Axiata Integ rated Annua l Repor t 2018 | Abo u t Thi s Repor t

CHAMPIONING DIGITAL
INNOVATION & TECHNOLOGY
TO ADVANCE ASIA
INTEGRATED ANNUAL REPORT 2018
 NEPAL

PAKISTAN

INDIA BANGLADESH

MYANMAR
AS A NEW GENERATION
DIGITAL CHAMPION
CAMBODIA
THAILAND

SRI LANKA

MALAYSIA

SINGAPORE

Digital Telco INDONESIA

As one of the leading telecommunications groups in
Asia in pursuit of its vision to be the New Generation
Digital Champion by 2022, Axiata has transformed
itself from a holding entity with a portfolio of
pure-play mobile assets into a Triple Core Strategy
Digital Businesses
driven business focusing on converged Digital Telco,
Digital Businesses and Infrastructure.

Today, Axiata’s operations include Enterprise

business solutions, digital financial services and digital
Infrastructure
advertising across 11 countries, as well as a global
digital platform business that connects services and
content providers to 3.5 billion consumers.
Corporate Information

Board of Directors

Tan Sri Ghazzali Sheikh Abdul Khalid Dr Muhamad Chatib Basri Dr Lisa Lim Poh Lin
Chairman Independent Non-Executive Director Independent Non-Executive Director
Independent Non-Executive Director
Dato’ Mohd Izzaddin Idris Khoo Gaik Bee
Tan Sri Jamaludin Ibrahim Independent Non-Executive Director Independent Non-Executive Director
Managing Director/President & Group Chief
Executive Officer Dato Dr Nik Ramlah Nik Mahmood Tengku Dato’ Sri Azmil Zahruddin Raja
Abdul Aziz
Independent Non-Executive Director
Non-Independent Non-Executive Director
David Lau Nai Pek
Senior Independent Non-Executive Director Dr David Robert Dean
Independent Non-Executive Director

Group Company Secretary Investor Relations Share Registrar Auditors

Suryani Hussein Tel : +603 2263 8706 Tricor Investor & Issuing House Services PricewaterhouseCoopers PLT
LS0009277 Fax : +603 2278 3337 Sdn Bhd (Company No. 11324-H) (LLP0014401-LCA & AF 1146)
Email : ir@axiata.com Unit 32-01, Level 32, Tower A Level 10, 1 Sentral, Jalan Rakyat
Vertical Business Suite Kuala Lumpur Sentral
Registered Office Avenue 3 Bangsar South 50706 Kuala Lumpur, Malaysia
Level 5, Corporate Headquarters Stock Exchange Listing No. 8, Jalan Kerinchi Tel : +603 2173 1188
Axiata Tower, 9 Jalan Stesen Sentral 5 Listed on Main Market of 59200 Kuala Lumpur, Malaysia Fax : +603 2173 1288
Kuala Lumpur Sentral Bursa Malaysia Securities Berhad Tel : +603 2783 9299 Email : pwcmsia.info@my.pwc.com
50470 Kuala Lumpur, Malaysia Listing Date : 28 April 2008 Fax : +603 2783 9222
Tel : +603 2263 8888 Stock Code : 6888 Email : is.enquiry@my.tricorglobal.com
Fax : +603 2263 8903 Stock Name : Axiata
Stock Sector : Telecommunications &
Media
Website
www.axiata.com
 Integ rated Annua l Repor t 2018

Entities Across Asia

NON-MOBILE SUBSIDIARIES &
MOBILE SUBSIDIARIES
ASSOCIATES / AFFILIATES
MALAYSIA INDONESIA SRI LANKA
MALAYSIA MALAYSIA
Celcom Axiata PT XL Axiata Dialog Axiata PLC
Axiata Digital Axiata Digital
Berhad Tbk.
Services Sdn Bhd eCode Sdn Bhd
Year of Investment/Shareholding: Year of Investment/Shareholding: Year of Investment/Shareholding: Year of Investment/Shareholding: Year of Investment/Shareholding:
2008/100.0% 2005/66.4% 1995/83.3% 2014/100.0% 2017/100.0%
Nature of Business: Nature of Business: Nature of Business:
Mobile Telecommunications Mobile Telecommunications and Multimedia Communication Services, Telecommunications Nature of Business: Nature of Business:
Services Infrastructure Services, Media and Digital Investment Holding and Operations of Digital Financial Services Company
Customers: Services including Financial Services and Digital Services Providing e-wallet Services
9.1 million Customers: Business Process Outsourcing Services
54.9 million
Technology Deployed: Customers:
Mobile - GSM/GPRS/EDGE, 3G/ Technology Deployed: 13.8 million
HSPA+, LTE/LTE-A Mobile - GSM/EDGE, 3G/HSPA+,
Fixed Network - FTTx, LTE LTE/LTE-A Technology Deployed:
Mobile - GSM/EDGE, 3G/HSPA+,
No. of BTS: No. of BTS: LTE/LTE-A, 5G Pilot
2G – 8,256 2G – 37,426 Fixed Network - FTTx, DOCSIS, LTE, WIFI,
3G – 14,775 3G – 51,398 CDMA, WIMAX, IPTV, DTH MALAYSIA MALAYSIA
4G – 13,269 4G – 29,772 (satellite TV) Axiata Digital Apigate Sdn Bhd
Advertising Sdn Bhd
Network Coverage (by population and Network Coverage (by population and No. of BTS:
technology): technology): 2G – 4,705 Year of Investment/Shareholding: Year of Investment/Shareholding:
2G – 95.2% 2G – >93% 3G – 3,311
2014/81.7% 2017/100.0%
3G – 93.1% 3G – >95% 4G – 3,138
4G – 90.6% 4G – >92%
Network Coverage (by population and Nature of Business: Nature of Business:
technology): Integrated Digital Advertising Agency Global API Solutions Provider
2G – 98%
3G – 86%
4G FDD – 91%
4G TDD – 67%

BANGLADESH CAMBODIA NEPAL MALAYSIA

Robi Axiata Smart Axiata Ncell Private edotco Group
Limited Co., Ltd. Limited Sdn Bhd

Year of Investment/Shareholding: Year of Investment/Shareholding: Year of Investment/Shareholding: Year of Investment/Shareholding:

1996/68.7% 2013/72.5% 2016/80.0% 2012/63.0%
Nature of Business: Nature of Business: Nature of Business:
Mobile Telecom Operator Mobile Telecom Operator Mobile Telecom Operator Nature of Business:
Telecommunications Infrastructure and
Customers: Customers: Customers:
Services
46.9 million 7.5 million 16.3 million
Technology Deployed: Technology Deployed: Technology Deployed:
Mobile - GSM/EDGE, 3G/HSPA+, Mobile - GSM/EDGE, 3G/HSPA+, Mobile - GSM/EDGE, 3G/HSPA+
LTE/LTE-A LTE/LTE-A
Fixed Network - LTE No. of BTS:
No. of BTS: 2G – 3,361
2G – 10,614 No. of BTS: 3G – 2,955
3G – 9,648 2G – 2,460 4G – 943
4G – 7,396 3G – 2,504
4G – 2,391 Network Coverage (by population and
Network Coverage (by population and technology):
technology): Network Coverage (by population and 2G – 92.5%
2G – 97.0% technology): 3G – 58.6%
3G – 76.0% 2G – 98.7% 4G – 15.6%
4G – 79.0% 3G – 83.8%
4G – 73.3%
Financial Calendar

30 April 2019

Notice of 27th 22 May 2018 24 August 2018 23 November 2018 22 February 2019 30 April 2019
Annual General Meeting
and Issuance of
Integrated Annual Report
2018

Unaudited consolidated Unaudited consolidated Unaudited consolidated Unaudited consolidated Issuance of audited
results for the first results for the second results for the third results for the fourth financial statements for
quarter ended quarter and half-year quarter ended quarter ended the financial year ended
31 March 2018 ended 30 June 2018 30 September 2018 31 December 2018 31 December 2018

Dividends

29 May 2019

5 June 2018 21 June 2018 19 July 2018 27 September 2018 12 October 2018 12 November 2018

27th Annual
General Meeting

Notice of Book Date of

Notice of Book Date of Payment for
Payment for Closure for Entitlement
Closure for Final Entitlement for Interim Tax
Final Tax Exempt Interim Tax for Interim Tax
Tax Exempt Final Tax Exempt Exempt Dividend
Dividend under Exempt Dividend Exempt Dividend
Dividend under Dividend under under Single-Tier
Single-Tier System under Single- under Single-Tier
Single-Tier System Single-Tier System System of 5 sen
of 3.5 sen per Tier System of System of 5 sen
of 3.5 sen per of 3.5 sen per per Ordinary
Ordinary Share 5 sen per per Ordinary
Ordinary Share Ordinary Share Share
Ordinary Share Share
About This Report
Reporting Philosophy Approval by the Board Information on Exclusions

This is Axiata Group Berhad’s (“Axiata” or “the Group”) second
Integrated Annual Report (“IAR”), which has been prepared
according to the International Integrated Reporting Council’s
(“IIRC”) International <IR> Framework. In using the integrated
reporting approach, we aim to provide our stakeholders with
a concise yet comprehensive account of our business and
strategies, and demonstrate how value is created and shared.
The Board of Directors (“Board”) has applied its collective mind
in preparing and presenting Axiata’s IAR 2018 as guided by the
IIRC’s International <IR> Framework. The Board acknowledges
its responsibility in ensuring the integrity of this report, through
good governance practices and internal reporting procedures.
Materiality
Our disclosure appetite guides the limitations of information
available in this report. We seek to balance between positive
and negative information, and information withheld based on
competitive advantage. Requirements of the <IR> International
Framework have not been excluded due to the unavailability of
reliable information or specific legal prohibitions.

Scope and Boundary
Axiata’s 2018 IAR extends beyond financial reporting and
includes non-financial performance, opportunities, risks and
outcomes attributed to or associated with our key stakeholders,
all of which have a significant influence on our ability to create
value.
The 2018 IAR covers the period from 1 January 2018 to
31 December 2018 and builds on our previous publications.
The report covers the primary activities of the Group, namely
our three core business pillars of Digital Telco, Digital Businesses
and Infrastructure.
Assurance
Our Annual Financial Statements (“AFS”) have been audited as
fully disclosed in the Statutory Annual Financial Report 2018.
Limited assurance has been provided on selected disclosure(s)
within our Sustainability and National Contribution Report
(“SNCR”) 2018. Both of those processes make up our 2018 IAR,
which contains both financial and non-financial indicators.
We have conducted our materiality assessment in line with Bursa
Malaysia Securities Berhad’s (“Bursa”) Listing Requirements. Axiata’s 6 Capitals
We have sought our stakeholders’ input in addition to the
business’ perspectives. These include risks identified through our
risk management framework in determining the material issues
which impact our ability to create value over the short, medium
and long-term. Our strategic responses to these material issues
are presented throughout this report. Financial Human
Forward-Looking Statements
This report contains forward-looking statements characterised
by the use of words and phrases such as “might”, “forecast”,
“anticipate”, “project”, “may”, “believe”, “predict”, “expect”, Intellectual Social & Relationship
“continue”, “will”, “estimate”, “target” and other similar
expressions. As our business operates in a perpetually shifting
and changing environment, it is subject to uncertainties that
could cause actual results to differ from those reflected in the
forward-looking statements.
Manufactured Natural

Improvements in Axiata’s IAR 2018

Axiata’s 4P Goals
In 2018, the Group improved our disclosures through the following actions:

Section 2018 Improvements

The Value We Create • Reporting three-year trends for indicators where data is available
• Providing an explanation on the trade-offs between capitals
Performance Partnership
Operating Environment • Comparison of external economic and market factors against Axiata’s strategic
response, implications on our strategy and the way forward for the Group
Risks and Materiality • Detailed descriptions of each risk, including risk matrix, risk level and movement,
mitigating actions, risk owners, impacts and key risk indicators
Eight Needle-Moving Strategic • Using Axiata’s 4P Goals as the framework for our Triple Core Strategy disclosure of the
People Planet & Society
Initiatives Group’s progress against the Eight Needle-Moving Strategic Initiatives
About This Report

Axiata’s Integrated Annual Report 2018 suite is made up of the following:

IAR Integrated Annual Report GA Governance & Audited SN Sustainability & National
FS CR
2018 Financial Statements 2018 Contribution Report 2018

All of Axiata’s Reports are available online at www.axiata.com

We welcome feedback on this report at info@axiata.com

Cover Rationale Images for the Integrated Annual Report 2018

By delivering on our vision of being a New Generation Digital Champion, we fast-forward progress in Asia for the The images in this year’s Integrated Annual Report cover and section separators were inspired by the new Axiata
next generation, helping them achieve their true potential and build a better future. brand film titled Kites 2.0. Please visit https://bit.ly/2IAnyJV to watch the video.

Reporting Frameworks and Reporting Suites

Reporting Suites Integrated Annual Report 2018 Governance & Annual Financial Statements 2018 Sustainability & National Contribution
Report 2018

• Management Discussion and Analysis
• Abridged Annual Financial Statements
• Corporate Governance Overview Statement
Disclosure
Governance and Compliance Documents • Global Reporting Initiative Standards
• Full Directors and Management Profile • Third Party Assurance
• Statement on Risk Management and Internal
Control
• Board Audit Committee Report
• Additional Compliance Information

Financial Statements
• Directors’ Report
• Audited Financial Statements
• Independent Auditor’s Report

Reporting Frameworks
• Malaysian Code on Corporate Governance 2017 • Malaysian Code on Corporate Governance • Bursa Malaysia Sustainability Reporting
• Bursa Listing Requirements • Bursa Listing Requirements Guidelines
• IIRC Integrated Reporting Framework • Companies Act 2016 • GRI Standards (Core)
• Companies Act 2016 • AA1000 Stakeholder Engagement
• ISAE 3000 (Revised) - Limited Assurance
Engagement
 Axiata Integ rated Annua l Repor t 2018 | Contents
CONTENTS

1 OUR BUSINESS

The Axiata Group

Shareholding Structure and Portfolio of
Investments
02

03
4 THE VALUE WE CREATE

Long-Term Group Value Creation Model

Our Six Capitals
Delivering Long-Term Value as a
31
32
6 OUR GOVERNANCE

Corporate Governance Overview

Corporate Governance Framework
Principle A: Board Leadership
59
61

What We Do 04 Regional and Global Player 33 and Effectiveness 62

Core 1: Transforming from Pure-Play Mobile
Service Providers to Converged
Digital Telcos 05
Core 2: Advancing Our Three Core Digital
Businesses Towards Profitability 06
Core 3: Award-Winning Regional Tower
Company Poised for Global Growth 07
Building a Modern, Agile and Digital
Asian Talent Factory 34
Becoming a Trusted and Reliable
Digital Partner 35
Supporting Governments and
Communities in Our Markets 36
Enabling Digitally-Connected Societies 37
Minimising Environmental Impact 38
Principle B: Effective Audit and Risk
Management 78
Principle C: Integrity in Corporate
Reporting and Meaningful
Relationship with Stakeholders 82
Group Directory 83

2 STATEMENTS AND ANALYSIS

Chairman’s Statement
In Conversation with the President &
Group CEO
09

11
5 OUR PERFORMANCE

Financial Review
Consolidated Statement of
Comprehensive Income
40

44
7 OTHER INFORMATION

Notice of Annual General Meeting

Proxy Form
85

Management Discussion and Analysis 15 Consolidated Statement of Cash Flows 44

Consolidated Statement of Financial
Position 45
2018 Overview of Operating Companies’

3
Performance 46
Operating Companies’ Review 48
OUR STRATEGY

Our Long-Term Strategy Towards Digital

Market Leadership 21
Operating Environment 22
Stakeholder Engagement 23
Risks and Materiality 24
Eight Needle-Moving Strategic Initiatives 29
 Our
Business
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 2

Integ rated Annua l Repor t 2018

The Axiata Group

As one of the leading telecommunications groups in Asia, Axiata continues to evolve The Group’s current focus is on transforming into a New Generation Digital Champion
its business in line with dynamically shifting industry trends and developments. by 2022, to capture growth and opportunities arising from the Fourth Industrial
Revolution (IR 4.0).

Phase 1: 2008-2010 Phase 2: 2011-2015 Phase 3: 2016-2022

Building A New Distinct Company Creating A Regional Champion Becoming A New Generation Digital Champion

Our Goals
Our Vision
New Generation
Digital Champion Performance
by 2022 To be one of Asia’s largest telecoms and tech
groups in all financial metrics as we grow in market
capitalisation and generate strong Return on
Invested Capital

People
To be recognised as a Top Talent Brand and an
Our Purpose Our Goals Asian Talent Factory

Advancing Asia The 4Ps

that define
our success
Partnership
To be the number one choice for customers and
partners by offering superior customer experience
while continuing to build trust with all our
stakeholders

Our Values
Uncompromising
Integrity, Planet & Society
Exceptional To be recognised as a responsible Digital Champion,
Performance
in creating a Digitally Inclusive Society
 Integ rated Annua l Repor t 2018

Shareholding Structure and Portfolio of Investments

• Axiata debuted on the Main
Board of Bursa Malaysia on
OUR SHAREHOLDERS
28 April 2008
• Tenth largest entity on the
FTSE Bursa Malaysia KLCI
(FMBKLCI) with a market Foreign Others/
capitalisation of RM35.6 billion Shareholdings Public
Khazanah Nasional Permodalan Employees Provident
as of 31 December 2018 Berhad Nasional Berhad* Fund Board
• One of Top 10 constituents
by market capitalisation 37.16% 18.42% 16.16% 10.55% 17.71%
within the FTSE4Good Bursa
Malaysia Index
• Balanced mix of local and
foreign institutional investors
as a result of the Group’s
strong fundamentals, long-
term growth prospects
and attractive investment
proposition
•
Continuous review of
strategic portfolio options MOBILE SUBSIDIARIES
to ensure long-term
value enhancement, optimal
deployment of capital and
funding for growth strategies

Year of Investment/ Year of Investment/ Year of Investment/ Year of Investment/ Year of Investment/ Year of Investment/
Shareholding: Shareholding: Shareholding: Shareholding: Shareholding: Shareholding:
2008/100.0% 2005/66.4% 1995/83.3% 1996/68.7% 2013/72.5% 2016/80.0%

NON-MOBILE SUBSIDIARIES

Year of Investment/
Shareholding:
2017/100.0%

Year of Investment/
Shareholding:
Year of Investment/ 2014/81.7% Year of Investment/
Shareholding: Shareholding:
2014/100.0% Year of Investment/ 2012/63.0%
Shareholding:
2017/100.0%

GA Note:
FS For complete details of Shareholding Statistics, please refer to page 190 * Comprises of total shareholdings held by trust funds managed by Permodalan Nasional Berhad

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 3
 Our Business
What We Do
• Current phase is guided
by the Axiata 3.0 strategic
blueprint, launched in 2016
• Focused on developing our
Triple Core Business - Digital
Telco, Digital Businesses
and Infrastructure - through
our Operating Companies
(OpCos) in footprint markets
• Ongoing Group-wide digital
transformation to enhance
our competitive advantage
through the adoption
of IR 4.0 principles and
technologies
• This digital transformation
framework cosists of:
- developing digital products
and services
- digitising external interfaces
- digitising internal processes
- modernising platforms and
network infrastructure
- aligning the organisation
to an Agile culture and
mindset
Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 4
Integ rated Annua l Repor t 2018
Becoming A New Generation Digital Champion
TRIPLE CORE BUSINESS OUR FOCUS PROGRESS UPDATES OUR OPERATING COMPANIES
1 Digital Telco • Creating a diversified portfolio of services focusing on new growth
Transforming value drivers of Home and Enterprise
from pure- • Home segment captures new revenues in mobile and fixed wireless
play mobile broadband services, digital and TV entertainment, and Smart
Home services
service
• Enterprise Business focus has been accelerated with a clear vision
providers to of becoming in-market champions, by leveraging on in-house
converged capabilities to provide cutting-edge solutions in Internet of Things,
digital telcos Cloud and Cyber Security within the Business-to-Business (B2B)
and Business-to-Government (B2G) Enterprise segments
2 Digital
Businesses • Axiata’s digital business arm, Axiata Digital Services (ADS) has
transitioned from being a venture builder of tech startups to
become an operator of digital companies
Advancing • Currently, ADS is spearheading the growth of Axiata’s three core
digital business verticals - Digital Financial Services (DFS) which
our three
houses Boost, eZ Cash and SmartLuy; Digital Advertising through
core digital
ada; and our digital platform business, Apigate. All three businesses
businesses
are targeted to be profitable by the year 2021/2022
towards • In April 2019, ADS obtained a strategic minority investment from
profitability Mitsui & Co., Ltd.
• Non-strategic digital venture assets will be carved-out to
an independent Singapore-based fund for a valuation of
USD140 million in 2019
3 Infrastructure • edotco is Axiata’s regional integrated telecommunications
infrastructure company that is now the 13th largest independent
tower company globally
• Specialises in end-to-end solutions in the tower services sector,
Award-winning including co-locations, built-to-suit, energy, transmission, and
regional tower operations and maintenance (O&M)
company • As one of the fastest growing regional tower companies, edotco
poised for is eyeing new opportunities in the other markets including the
global growth Philippines and Laos
• Poised for growth from regional to global scale, to become the fifth
largest tower company in the world by 2022
• Received the Frost & Sullivan’s “Asia Pacific (APAC) Telecoms Tower
Company of the Year” award for the third year running in 2019
 Integ rated Annua l Repor t 2018

Core 1: Transforming from Pure-Play Mobile Service Providers to Converged Digital Telcos

Celcom, XL, Dialog and Smart launched Home
broadband services
Celcom on track with digital transformation
2018 Key via digitisation of customer touchpoints and
Highlights automated customer service using robotics
and Artificial Intelligence with the launch of
Chatbots
Celcom was the first telecommunications
operator globally to be certified under the
ISO standard 18295-2:2017
Dialog leveraged on Internet of Things
(IoT) and Blockchain use cases to create
Connected Weather Systems, Connected
Agriculture, Smart Poultry Farming and
e-Know-Your-Customer
Smart used Spatial Analytics and AI to better
serve customers by optimising retail locations
Robi’s Salesforce Automation services
- >300,000 outlets, with ~300,000 paperless
transactions and 60,000 user interactions
digitally every day

Nepal Malaysia

Founded in 2001 Founded in 1988

16.3 million customers 9.1 million customers
Revenue NPR57.5 billion Revenue RM7.3 billion Cambodia
Market ranking - No.1 Market ranking - No.2
Network Technology Deployed: Network Technology Deployed: Founded in 2008
Mobile - GSM/EDGE, 3G/HSPA+ Mobile - GSM/GPRS/EDGE, 3G/ 7.5 million customers
HSPA+, LTE/LTE-A Revenue USD0.3 billion
Fixed Network - FTTx, LTE Market ranking - No.11
Network Technology Deployed:
Mobile - GSM/EDGE, 3G/HSPA+, LTE/
Sri Lanka LTE-A
Fixed Network - LTE
Founded in 1993
13.8 million customers
Revenue SLR109.2 billion
Market Capitalisation SLR82.3 billion
Market ranking - No.1
Network Technology Deployed:
Mobile - GSM/EDGE, 3G/HSPA+, Bangladesh Indonesia
LTE/LTE-A, 5G Pilot
Fixed Network - FTTx, DOCSIS, LTE, Founded in 1995 Founded in 1989
WIFI, CDMA, 46.9 million customers 54.9 million customers
WIMAX, IPTV, DTH Revenue BDT68.0 billion Revenue IDR23.0 trillion
(satellite TV) Market ranking - No.2 Market Capitalisation USD2.3 billion
Network Technology Deployed: Market ranking - No.2
Mobile - GSM/EDGE, 3G/HSPA+, Network Technology Deployed:
LTE/LTE-A Mobile - GSM/EDGE, 3G/HSPA+,
Notes: LTE/LTE-A
All OpCo market rankings are based on revenue market share for 2018
1
Based on internal estimations
IAR
More details on our OpCos can be found on pages 48-53 of the “Our Performance” chapter in this IAR

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 5
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 6

Integ rated Annua l Repor t 2018

Core 2: Advancing Our Three Core Digital Businesses Towards Profitability

Boost ada Apigate

Largest e-wallet in Malaysia 1.2x net revenue growth in 2018, and Enhanced global reach through partnerships with telco groups
>3.5 million customers and >61,500 expected strong growth in 2019 such as Zain and Etisalat, to game publishers and content
2018 Key merchants In July 2018, ada secured USD20 providers such as Tencent and Gameloft
Highlights 21x YoY Gross Transaction Value million funds from new strategic Future-ready APIs on one seamless platform allowing local
(GTV) growth in 2018 partner Sumitomo Corporation businesses to scale globally for SMS, Operator and e-wallet Billing
Transaction value per user has YoY GTV growth of 3.1x
increased 10x since launch Net revenue growth of 4.8x

eZ Cash (Sri Lanka) SmartLuy (Cambodia) Boost Malaysia (Malaysia)

Leading e-wallet provider in Sri Lanka Leading e-wallet provider in Cambodia >3.5 million users
>3.4 million customers, across three mobile >103,400 users, with 625,673 transactions >61,500 merchants
networks nationwide >14 million transactions nationwide
32% YoY growth in transactions >1,470 merchants
>25 million transactions in 2018 52% YoY growth in transactions Boost Indonesia (Indonesia)
Dialog Finance Company (Sri Lanka)
Launched in 2018 focusing on merchant
Finance company acquired by Dialog to services
facilitate the expansion of the scope of >458,000 merchants
Digital Financial Services offered
Axiata Digital Capital (Malaysia & Indonesia)
Revamped into a digital bank offering
licenced financial services
Providing micro-finance solutions
375 merchants (Malaysia and Indonesia)

ada (Across South and Southeast Asia)

Largest independent data-powered digital marketing agency across nine countries in South and Southeast Asia
With a team of more than 300 people comprising data scientists and engineers, and digital optimisation specialists
Services over 200 large accounts on digital buying, programmatic advertising and social media management

Apigate (Across Asia, Africa, Europe and South America)

In-house developed GSMA Award-winning API platform

Axiata’s home-grown global API business
Serves Northbound content and service providers and Southbound telco operators
Connects >110 MNOs
Reach of 3.5 billion consumers
IAR
More details on our digital businesses can be found on pages 55-57 of the “Our Performance” chapter in this IAR
 Integ rated Annua l Repor t 2018

Core 3: Award-Winning Regional Tower Company Poised for Global Growth

More than 29,800 towers owned and
managed across six countries
Expanded tower portfolio in Malaysia,
2018 Key providing tenancies to all major
Highlights mobile operators in the country
Significant growth in Myanmar,
ending 2018 with tenancy ratio of
2.09x
Optimised infrastructure design to reduce capex
by up to 15%
Signed agreement to enter the Laos market with
a local partner
Deployed the world’s first multi-tenant, multi-
operator small cells solution in KL Sentral, Malaysia
Digitised preventive maintenance for towers
using drone technology to improve reporting
time by 50%, and reduce inspection
turnaround time by 35%
Received Frost & Sullivan’s “Asia Pacific (APAC)
Telecoms Tower Company of the Year” award
for the third year running in March 2019

Myanmar

1,900 Towers owned

Pakistan
3,973 Tenancies
2.09x Tenancy ratio
870 Towers owned
1,183 Tenancies
1.36x Tenancy ratio Cambodia

2,301 Towers owned

1,325 Towers managed
Bangladesh 3,559 Tenancies
1.55x Tenancy ratio
8,562 Towers owned
1,386 Towers managed
12,428 Tenancies
1.45x Tenancy ratio

Malaysia
Sri Lanka
4,575 Towers owned
22 Towers owned 5,521 Towers managed
3,375 Towers managed 8,407 Tenancies
22 Tenancies 1.84x Tenancy ratio
1.00x Tenancy ratio

IAR
More details on edotco can be found on page 54 of the “Our Performance” chapter in this IAR

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 7
 Statements
and Analysis
 Axiata Integ rated Repor t 2018 | Ou r Bu s i ness
Integ rated Annua l Repor t 2018

Chairman’s Statement

TAN SRI GHAZZALI SHEIKH Dear Shareholders,

ABDUL KHALID
Chairman The year 2018 marked Axiata’s tenth anniversary as a regional mobile telecommunications
provider delivering on our promise of Advancing Asia. Having commenced with an operational
footprint spanning 10 countries providing pure-play mobile services, the Group today is present
in 11 countries in ASEAN and South Asia. Our services portfolio in tandem, has expanded to
include Digital Telco, Digital Businesses and Tower Infrastructure in line with our aspirations to
become a New Generation Digital Champion by 2022.

ADJUSTING TO A NEW NORMAL FOR THE INDUSTRY

The year 2018 can be described as pivotal for Axiata as the Group responded to volatile
macroeconomic conditions, technological and market disruptions, demand shifts and regulatory
uncertainties across the region.

As the Fourth Industrial Revolution inspires a continuous cycle of technological breakthroughs,

the demand for digital services is exploding across developed and developing economies.
Advancements in cloud technology, Internet of Things (IoT) and Artificial Intelligence (AI) are
creating new waves of opportunities. There have also been commercial deployments of 5G
technologies in developed markets such as the United States, Australia and Korea, and it will
only be a matter of time before our markets are ready for 5G deployment. Telecommunications
players are naturally placed to backbone infrastructure and connectivity needs but it is also
imperative to move swiftly to address business model and industry structure issues to take
advantage of this technological revolution.

Hypercompetition is pervasive within the industry, as mobile network operators struggle

to retain or capture growth. Disruptive competition from Over-The-Top (OTT) providers is
increasingly encroaching spaces traditionally occupied by telcos. Adjusting to this new norm
requires more than just competing on price, coverage and customer relationship management.
In Axiata’s case, future-proofing the Group calls for a paradigm shift in talent management,
portfolio optimisation as well as actively implementing digitisation initiatives across the
businesses in order to capitalise on new growth opportunities.

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 9
 Our Business Statements and Analysis Our Strategy
Chairman’s Statement
PAVING THE WAY FOR FUTURE GROWTH
In building resilience for the long-term, Axiata will continue with
its portfolio rebalancing and rationalisation exercise to prioritise
capital allocation to core businesses and markets in supporting
Group-wide digital transformation. This will include transforming
mobile telco-centric Operating Companies (OpCo) into
converged solutions providers, modernising the Group’s IT and
network infrastructure, digitising operations across all functions,
producing “unicorns” from amidst our digital businesses and
becoming one of the top five global tower companies by 2022.
At the same time, in staying grounded with the realities of our
current operating environment, the Group is keeping a very
close eye on maintaining a robust balance sheet that supports
our ambitious digital transformation by embarking on profitable
growth and cash focus initiatives for the short-term.
OUR COMMITMENT TO THE HIGHEST STANDARDS OF
RESPONSIBLE BUSINESS PRACTICES
Axiata has consistently upheld the highest principles of
transparency and accountability within a robust governance
framework. Efforts within this sphere involves ensuring our
OpCos aspire to the best global standards pertaining to
corporate governance, including tax licensing and data privacy
requirements.
Our leadership position across the region provides an excellent
opportunity for Axiata to contribute towards socioeconomic
development initiatives in our markets. As much as we are a
Malaysian company at heart, we partner governments as a
National Champion committed to strengthening the digital
ecosystem, nurturing the next generation of digital innovators,
and building local communities. Axiata will also continue to drive
best practices and sustainability principles in line with the United
Nations’ Sustainable Development Goals (UN SDG) framework
and Global Compact principles in addition to our very own
Sustainability Framework.
The Value We Create Our Performance Our Governance Other Information 10
Integ rated Annua l Repor t 2018
CHANGES TO THE BOARD
We bid farewell to Tan Sri Datuk Wira Azman Hj. Mokhtar after
10 years of service as Chairman of the Board. Tan Sri Azman
has been an inspiring leader for many and I can only hope to do
justice in continuing to carry this torch that I have accepted in
ensuring Axiata remains relevant and at the forefront at all times.
We are deeply indebted to him for his guidance and insights in
steering Axiata forward through the years and we wish him well
with his future endeavours.
Our gratitude also to Datuk Azzat Kamaludin who retired
as Board member on 23 May 2018 after serving as its Senior
Independent Non-Executive Director for over 10 years. We
are grateful for his invaluable contributions to the Group and
unwavering commitment to the highest standards of governance
and performance.
It also gives me great pleasure to announce we now have
30% female representation on the Board, having appointed
Ms Khoo Gaik Bee as Independent Non-Executive Director on
1 January 2019. Ms Khoo joins Dato Dr Nik Ramlah Nik Mahmood
and Dr Lisa Lim Poh Lin who were appointed to the Board on
21 March 2017 and 8 June 2018 respectively.
ACKNOWLEDGEMENTS
On behalf of the Board, I wish to thank all our stakeholders for
their continued support towards Axiata. Our gratitude goes to
governments and regulators of our OpCos for their support and
the opportunity to continue to serve in their markets and partner
in their developmental efforts. We also extend our appreciation
to our employees across the Group for their exemplary work
and efforts. Lastly, we thank our shareholders for their continued
support and belief in Axiata.
TAN SRI GHAZZALI SHEIKH ABDUL KHALID
Chairman
In Conversation with the President & Group CEO

Axiata Integ rated Repor t 2018 | Ou r Bu s i ness

Axiata
Shifts Gear to
Realise Digital
Ambitions
The global telecommunications industry
is confronting some of its toughest hours
as massive technological, competitive and
consumer changes occur in response to the
demands and trends of the Fourth Industrial
Revolution (IR 4.0).

Having begun its journey in 2008, and as it

marked its tenth anniversary, Axiata Group
Berhad (Axiata or the Group) has become
one of the leading telecommunications groups
in Asia. Since 2016, the Group embarked on
an ambitious Axiata 3.0 roadmap aimed at
transforming itself into a New Generation Digital
Champion by 2022. The aim as highlighted
by Tan Sri Jamaludin Ibrahim, is for Axiata to
continue its growth story to remain successful
and sustainable.

2018 appeared to be, by any measurement,

a watershed year for Axiata. In this interview,
Tan Sri Jamaludin shares about the Group’s
performance in 2018, and how all the work
done in that year helped position Axiata very
well for the future and its long-term plans.

To read the interview, please flip this page outwards.

 In Conversation with the President & Group CEO

Axiata President

c. Apigate, our digital enablement platform
& GCEO shares expanded its global reach in 2018 through
partnerships with telco groups such as Zain and
the highlights and Etisalat, Tencent and Gameloft, giving it access
to 3.5 billion consumers and over 110 MNOs,
lowlights of 2018 compared to 350 million consumers and eight
MNOs in 2017. It is a truly global player, with future
and the Group’s ready APIs on one seamless platform allowing
businesses to scale globally for SMS, location
future plans services, e-wallet and operator billing. Having
consolidated the business, we have seen a rapid
rise in YoY gross transaction value at 3.1x and net
TAN SRI JAMALUDIN revenue at 4.8x
d. Additionally, we have also signed up to transfer
IBRAHIM our non-core digital ventures investment portfolio
Managing Director/ at a value of USD140 million to a private equity
President & Group Chief firm, which we are targeting to conclude within
Executive Officer Q2 2019
4. edotco has secured a robust position as a strong
challenger in the global towerco market, now the
third fastest growing towerco among global peers.
It has also expanded its footprint to cover six
countries including a recent expansion in to Pakistan,
with more than 29,800 towers
Our Digital Transformation Strategy focuses on driving
improvements through the adoption of IR 4.0 principles.
We conduct both external and internal validation to
7
What are your 2019/2020 plans? Will they be
any different from the past?
TSJI: Firstly, the operational progress and momentum
gathered from the Group’s 2018 performance will
provide us with a significant boost to pave the way
for a “promising” 2019. In fact, some of the very issues
that made the headlines in 2018 will help us materially in
2019 especially in the following aspects:
1. With all OpCos growing market share and delivering
the best revenue performance in their respective
markets, we exited 2018 with a strong market
position to meet our 2019 targets. Following two very
successful years in delivering operating expenditure
(opex) and capex savings through our internal cost
optimisation programme, we are on track in our
journey to continue improving our cost base, and
meet our RM5 billion cumulative savings target by
2021
2. Our OpCos had delivered significant progress in
digitising critical areas including Products and
Services, Internal Processes, Infrastructure and
Platform, as well as Organisation and Culture. With
each of our OpCos now outperforming their in-
market peers in terms of digital maturity, we are
optimistic our continuous improvements in this area
will serve as a competitive advantage in our markets

A
track our progress. While acknowledging we have 3. With the efforts and progress made in 2018, each of
Average Revenue Per User (ARPU) YoY – validating
a lot more to do, I am happy to report that we have the new growth areas we identified in our Triple Core
the successful execution of its strategy. Furthermore,
progressed significantly from where we started in 2017: Strategy are now expected to generate double-digit
cost optimisation initiatives at Celcom led to a
2018 RESULTS commendable trend with Quarter on Quarter (QoQ)
EBITDA growth of 6%2 and an EBITDA margin uplift
1. Digital Products and Services
This involves transforming our product and service
growth in 2019:
a. Digital Telco: In addition to Dialog, in 2018 we
of 2 ppt2 in the fourth quarter (4Q) of 2018, allowing portfolio to include a rich suite of digital offerings, launched Home/Converged offerings in Celcom,

1
How would you describe Axiata’s
performance in 2018?
TSJI: It certainly was a noteworthy year at many
levels. A watershed year, to say the least!
On one hand, the headline numbers may come across
as alarming, on the other, the underlying performance
was excellent, and all the groundwork done has
positioned us very well for our future.
Let me start with a short financial summary. On constant
currency basis, adjusting for one-offs and excluding
Malaysian Financial Reporting Standard (MFRS) 15 and 9,
revenue grew by 3.7% to RM25.3 billion whilst Earnings
Before Interest, Tax Depreciation and Amortisation
(EBITDA) rose 2%. Underlying Profit After Tax and
Minority Interest (PATAMI) stood at RM1.2 billion. Axiata
ended the year with a solid cash position of RM5.1 billion
and a very comfortable gross debt/EBITDA at 2.3x.
Now we peel through the numbers. I must say, one
of our proudest achievements in 2018 is the excellent
operational performance recorded by our six OpCos
where all of them grew fastest in revenue relative to
all industry players. Not just better than the average,
Celcom to kickstart 2019 with a healthier cost base.
Having said that, this is still an area that requires a lot
more work.
Due to the concerted efforts to improve its network
in the past three years, Celcom has since achieved
major progress in network availability and quality
– LTE and LTE-A coverage are now at 91% and 78%
respectively, delivering better video experience to its
customers. Identified as a key turnaround area back in
2016, Celcom has now shown significant improvement
in its distribution, achieving the number one position
in Dealer Satisfaction nationwide in 2018. Since 2016,
its relentless focus on driving organisational and digital
transformation has also produced encouraging results.
In parallel, Celcom continues to be recognised for its
customer centricity, taking the top spot in Net Promoter
Score and being recognised by Forbes as one of the
“Top 10 Most Customer-Focused Companies in Asia”.
Meanwhile, XL is a great example of the competition
punching above its weight. Despite the industry
being mired by hyper competitive pressures from
the mandatory prepaid SIM registration in 2018, XL’s
consistent strategy execution delivered exceptional
results. In a market which saw 84 million subscribers
wiped out in 2018, XL managed to beat all its peers in
Indonesia as the only MNO to have grown subscribers,
with a focus on simplicity of use. We currently
estimate improvements in this area by approximately
70%
2. Transforming our External Interface and Internal
Processes
The transformation of external interfaces through
which the above products and services are
delivered to our customers and partners ranges from
customer touchpoints to digital engagements with
channel partners, suppliers and external networks.
In addition to that, we have also worked hard to
radically simplify and digitise our internal processes.
Since 2017, we have recorded between 45% and
50% progress on both these fronts
3. Transforming our Infrastructure & Platforms
Complete modernisation and digitisation of our
network, IT and platforms involves new architecture,
making them all Internet Protocol (IP), virtualisation
and mostly software-driven, ensuring we pre-empt
the demands of IR 4.0 as well as of advanced forms
of video communications to include Augmented
Reality (AR) and Virtual Reality (VR). Today we have
enhanced the digitisation of our infrastructure and
platforms by 30%
4. Organisation, Culture and Mindset Transformation
XL and Smart – predominantly via fixed wireless
access (FWA). This allows us to leverage on our
existing mobile network for further upsides through
cross-selling to existing customers. In capturing the
Enterprise segment, we have built a strong sales
funnel for actualisation in 2019 and refined our
strategy through our 2018 key learnings
b. New Digital Businesses: Boost, ada and Apigate
exited 2018 with exponential top-line growth and
are expected to maintain this exciting momentum
in 2019 and beyond. Each of these core digital
businesses are now on an encouraging path
towards profitability by 2020/2021
c. Infrastructure: With a consistent track record of
double-digit growth across all financial metrics
since its inception, we expect edotco to continue
its “towering” growth story in 2019 and beyond
4. The cash proceeds from the divestment of our stake
in M1 will strengthen our balance sheet, putting Axiata
in a more robust position to fund future growth
opportunities
5. The reclassification of our Indian asset as a pure
investment into the balance sheet means Idea’s
performance will no longer drag our profitability. In
fact, there are now more upsides given our belief in
the long-term future of the merged company
6. The strategic investments we secured for ada in
2018 acted as an external validation of our digital

c
but the best! Furthermore, four of them performed Right at the core of an organisation is its people Acknowledgements
investments, which may translate to further upsides in
revenue and EBITDA by 2.6%, 0.4% and 2.3%
the best in EBITDA in their respective markets. This is a and culture. Digital Transformation would not be Axiata’s valuation. Additionally, this cash investment
respectively.
stellar achievement and must be commended. successful without a completely modern workforce, Allwillour
help stakeholders
to fund the futurehavegrowth of our digital
contributed
Retrospection
We also took the decision in 2018 to significantly
The continued investment in XL’s 4G network
significantly improved both the user experience as well
organisation culture and mindset. We call it a
Modern, Agile and Digital, or a M.A.D. organisation.
businesses
towards
totowards
ourand
continue
prepare
success
profitability
with by
and
our
them
lendontoa our
2020/2021
self-funded
onward moving
ability path
‘clean-up’ our balance sheet through the most massive as the economics of providing mobile data services, We have achieved good momentum, improving by journey. On behalf of the Management
non-cash write-off exercise ever to date, mainly 40% in our internal metrics for an Agile workforce While maintaining our long-term strategy and vision,
especially in ex-Java. Its 4G coverage has now expanded at2019/2020
Axiata, Ithe would
Group like to express our

9
involving 2G and legacy assets in XL and Celcom, so in will focus more on profitable
to around 400 cities and areas, leading to double- collective gratitude torelative
our toBoard
that we could have a nice start from 2019 onwards. growth and cash generation revenueof growth
digit growth in subscribers and revenue for ex-Java. Directors,
to strengthen in fulfillingsheet
our balance their fiduciary
and prepare for the
2018Looking Unsurprisingly, XL endedandthe year as the sincemost data-
was alsoback howwe
the year dosignificantly
you think reshaped
Axiata has ourperformed financially operationally
centric operator with 80% smartphone penetration and
its inception? responsibilities,
years ahead through and ourin providing strategic
“Shifting Gear” initiatives
portfolio, with the future in mind in six key areas: which
directioncovers tothese eight measures:
the company by observing the
82% data revenue contribution (4Q 2018).
1. Supported
TSJI: Generally, theAxiata’s
merger operational
of our associate, Idea, within all of our operating markets has been favourable. From 2008 to 2018, Compounded Annual Growth
performance 1. While expected
highest standards to still
of deliver the industry
governance, ethicsrevenue
RateVodafone
(CAGR) for India, to make
revenue wastheat combined
8.4%, EBITDAcompany
at 7.2%Atand growth in their respective
and integrity at all times. To markets,
our more our OpCos
than will
thenormalised
same time, PATAMI
XL’s Dualat 4.2%.
Brand However,
Strategy Total Shareholder Returns (TSR) since 28 April 2008 to
continues
the largest operator in India and one of the largest in target to grow their EBITDA and profit relatively
31 December to track well with both XL and Axis brands recording 12,000 employees throughout our regional
the world 2018 recorded at -1.5%. all-time high Net Promoter Scores in 2018. At the
faster than revenue and therefore, improve their
2. Reclassified our investment in Idea from associate to footprint,
respectivewe thank you
profitability for your
margins dedicated
compared to 2018
Frost & Sullivan 2018 Asia Pacific ICT Awards, XL was contributions towards enabling
Havingsimplesaidinvestment
that, Axiata’s
as a performance can behelping
result of the above, examinedevenfromrecognised
two lenses: time-period and portfolio. 2. Since the unveiling of the Group’sour New Cost
five-year
as the “Best Asia-Pacific Mobile Data Generation Digital Champion
to insulate our future profits while the merged Optimisation initiative back in vision.
2017, close to RM3
Service Provider of the Year”.
For company worksyears,
the first seven on its integration
the Group performed extremely well. From 2008 to 2015, CAGR for revenue was 8.8%, EBITDA 8.0% and normalised PATAMI 20.7%. billion worth of savings have been delivered over the
3. Announced that our investment in M1 was no Ourlast two
deepestyears. In 2019, our OpCos
gratitude also goeswill continue
to to
TSR from 28 April 2008 to 31 December 2015 was 50.3%. Moving forward, Celcom, XL, as well as our remaining
longer strategic, leading to the sale in 2019 and ourdrive opex and capex
investors, partners,efficiency
mediain eachandmarketall with
OpCos will be placing additional emphasis on improving
strengthening of our balance sheet the long-term goal
stakeholders. As offor achieving a cumulative savings
the governments
However,
4. Executed majorourshifts
strategyhave to occurred across
focus on three industryprofitability
thedigital
core
by delivering
globally since then. Our ambitious
operationscosthave
savings
beentargets
further affected by numerous external macroeconomic of RM5 billion by 2021
and “sweating” their network to extract maximum value and regulators in our markets of
factors especially regulatory uncertainties and forex from volatility, compounded by weak 3. To improve profitability over the next two years, the
businesses and the recategorisation of the rest existing sites. Additionally, we performances
have identifiedat Celcom (2015-2016) and XL (2013-2016) and operation,
of ourafter
recently, digital ventures
years as non-core,
of exceptional leading to the
performance, at Idea (2016-2018). This waswhich
also the Group will thankhave toyou for your
reprioritise new continuing
investments with
three New Growth Areas are period
expected where the Group boosted capital investments with additional
to deliver faith, and allowing uscan to find
contribute to
long payback unless we ways to moderate
RM1strongest
billion tooperational
RM2 billionperformance to date Digital
per year in Axiata in 2018Services, Robi, XL,
double-digit edotco
growth and
for our evenTelco
Digital Celcom,
pillar thus
over increasing
the our D&A and reducing our PATAMI. Hence, your
and the monetisation of non-core assets in 2019 any communities,
short-term negative and profit
driveimpact
the digital
due to the
from 2015edotco
to 2018, while next7.2%
few years. This includes
5.4%,aggressively
normalisedcapturing
PATAMI the
5. Grew further to Axiata’s CAGR
be a material for revenue
component of grew and EBITDA was down by 21.0%. TSR from 31 December 2014 to economies of your countries. Most of all,
upfront Investment
31 December
the Group, 2018 was down
positioning well for 38.3%.dividends and Home segment, expanding our reach in the Enterprise
by future 4. To
we would lower likeourtorisk and our
thank exposure, we will
subscribers and explore
segment and growing the high-margin digital value-
monetisation if these
users across investment
our ASEAN opportunities
and South can Asian
be funded
added services revenue stream.
6. Embarked on new segments, which are Enterprise and
If we exclude OpCos that require intensive short-term capital deployments but with long-terms returns, like Axiata Digital Services, Robi, XL, as well as through strategic
footprint for their partnerships
continued or financial
loyalty investors
and
Home, which will be the source of our future
Idea, performance was reasonable especially given all the growth external I challenges. From 2015 5. Following ada’s success in securing a valuation
In summary, am confident that all the to 2018,
stars haveCAGR
finally for revenue grew 8.5%, EBITDA was up 13.4% and support.
and the M1 divestment, we will continue to review
normalised PATAMI remained aligned for both Celcom and XL to return to their peak
Despite the headlines, I am flat.
happy with 2018 even performances and stake a much stronger position in
the prospects of monetising some of our existing
though we could have done even better. investments for cash and validation without
their respective markets.
Generally, from inception to 2018, our OpCos have done very well, with all OpCos recording increased market share, growing revenue and EBITDA higher than compromising our long-term growth aspiration.
the market and in most cases, performing the best in their respective markets. However, there is much room for improvement in Profit After Tax (PAT) as we Additionally, a key priority for all OpCos is to focus on
believe this could have been better. Needless to say, this issue is being addressed. TAN“sweating”
SRI JAMALUDIN existing assetsIBRAHIM
to extract more value from
each dollar of capital already deployed
Managing Director/President
6. While we deliver further operational & improvements in
Another way to look at our performance over the last 10 years is through the following positive outcomes: Group 2019,Chief Executive
the changes in our Officer
industry landscape urgently
1. Delivered total dividends of RM12.9 billion to shareholders, out of which RM10.6 billion was in cash. This excludes RM4.1 billion paid to TM in 2009 as part of necessitate structural changes over the long-run such
the demerger deal which had indirectly benefited our shareholders as most have shares in TM as part of the demerger formula as in-market consolidation and network sharing to
2. Recorded a cumulative PAT of RM14.3 billion preserve industry sustainability and at the same time,
meet customers’ satisfaction. We will continue to
3. Paid total taxes of RM9.2 billion in the countries we operate in
actively evaluate such opportunities
4. Invested total capex and opex amounting to USD87.2 billion5 in the countries where we operate, supporting approximately one million direct and indirect jobs 7. We undertook a major impairment in 2018
annually in our footprint markets by sunsetting legacy assets which will give us
Depreciation and Amortisation (D&A) savings of
On hindsight, we could have done better in some areas, but given all the external challenges that we had to navigate, we are happy with our overall performance approximately RM150 million per year
so far. 8. Correspondingly, the 2019 scorecard/KPIs for the
Group as well as our OpCos have been aligned to
reflect the 2019/2020 “Shifting Gear” priorities
Note:
5
Source: Independent Third-Party Assessment of Axiata’s National Contribution, 2018
In Conversation with the President & Group CEO
A
2018 RESULTS
1
How would you describe
performance in 2018?
TSJI: It certainly was a noteworthy year at many
levels. A watershed year, to say the least!
On one hand, the headline numbers may come across
as alarming, on the other, the underlying performance
was excellent, and all the groundwork done has
positioned us very well for our future.
Let me start with a short financial summary. On constant
currency basis, adjusting for one-offs and excluding
Malaysian Financial Reporting Standard (MFRS) 15 and 9,
revenue grew by 3.7% to RM25.3 billion whilst Earnings
Before Interest, Tax Depreciation and Amortisation
(EBITDA) rose 2%. Underlying Profit After Tax and
Minority Interest (PATAMI) stood at RM1.2 billion. Axiata
ended the year with a solid cash position of RM5.1 billion
and a very comfortable gross debt/EBITDA at 2.3x.
Now we peel through the numbers. I must say, one
of our proudest achievements in 2018 is the excellent
operational performance recorded by our six OpCos
where all of them grew fastest in revenue relative to
all industry players. Not just better than the average,
but the best! Furthermore, four of them performed
the best in EBITDA in their respective markets. This is a
stellar achievement and must be commended.
We also took the decision in 2018 to significantly
‘clean-up’ our balance sheet through the most massive
non-cash write-off exercise ever to date, mainly
involving 2G and legacy assets in XL and Celcom, so
that we could have a nice start from 2019 onwards.
2018 was also the year we significantly reshaped our
portfolio, with the future in mind in six key areas:
1. Supported the merger of our associate, Idea, with
Vodafone India, to make the combined company
the largest operator in India and one of the largest in
the world
2. Reclassified our investment in Idea from associate to
simple investment as a result of the above, helping
to insulate our future profits while the merged
company works on its integration
3. Announced that our investment in M1 was no
longer strategic, leading to the sale in 2019 and
strengthening of our balance sheet
4. Executed our strategy to focus on three core digital
businesses and the recategorisation of the rest
of our digital ventures as non-core, leading to the
strongest operational performance to date in 2018
and the monetisation of non-core assets in 2019
5. Grew edotco further to be a material component of
the Group, positioning well for future dividends and
monetisation
6. Embarked on new segments, which are Enterprise and
Home, which will be the source of our future growth
Despite the headlines, I am happy with 2018 even
though we could have done even better.
2
Can you explain the cause for losses in 2018.
Are you worried? Will there be further write-
offs, impairments or for that matter, potential
surprises in the future?
TSJI: The losses were overwhelmingly due to non-cash
accounting treatments, namely:
1. Idea related losses of RM3.9 billion which comprised
the following:
a. RM358 million non-cash loss on dilution due to
Axiata’s non-participation in Idea’s issuance of
new shares
b. RM186 million share of losses from Idea prior to
Axiata’s derecognition of Idea as an associate
c. RM3.3 billion technical impairment from the
Idea reclassification exercise from associate to
simple investment due to the merger of Idea with
Vodafone India
2. Non-cash asset write-off, impairment and
accelerated depreciation totalling RM1.8 billion, for
2G and legacy assets
3. An impact of RM60 million purely due to change in
accounting standards
4. Fair value of options and derivatives at RM298 million
5. Unfavourable forex translation impacted Normalised
PATAMI by RM120 million as the Ringgit Malaysia
strengthened against several OpCo currencies by an
average of 8% in 2018
The cash impact came from realised foreign exchange
(forex) losses on borrowings, capital expenditure
(capex) and working capital amounting to RM213 million.
That is the only pain for us, but it is beyond our control.
All things considered, the losses are worrying if
our investors are concerned solely by the headline
numbers, but not if they studied the excellent
underlying performance of all our OpCos in 2018 and
our strong balance sheet with a healthy gross debt/
EBITDA level at 2.3x and cash balance of RM5.1 billion.
Obviously, we cannot rule out any future write-off or
impairment, as accounting standards require us to
regularly test the need for it. But barring any major
external factors, we do not expect the magnitude to
be anything close to 2018. For the last 10 years, the
average write-offs and accelerated depreciation were
around 1% of capex1 and an average of RM150 million
per year.
3
Celcom and XL as the Group’s biggest
contributors to revenue have had more
than their share of challenges the last
few years. Like their industry peers,
both companies have gone through a
tumultuous period in that period. Are you
confident they have come around and
have what it takes to strengthen their
positions?
TSJI: Looking at the strategy, operational performance
and momentum gathered in the past year by both
Celcom and XL, the answer is a yes.
In the case of Celcom, it is now back on track as the
disciplined execution of its operational transformation
yielded solid results in 2018. Amidst a saturated
market, Celcom managed to outperform all its mobile
network operator (MNO) peers with a service revenue
growth of 1.1%2 Year on Year (YoY) and a market share
gain of 0.5 percentage point (ppt)3. It was also the
only MNO to have grown both prepaid and postpaid
Notes:
1
Capex base= Property, plant and equipment (PPE) carrying value
2
Growth numbers exclude MFRS 9 and 15 impact for 2018
3
Based on internal estimates
4
Axiata’s integrated digital marketing business, Axiata Digital Advertising Sdn. Bhd
Axiata President
& GCEO shares
the highlights and
lowlights of 2018
and the Group’s
future plans
TAN SRI JAMALUDIN
IBRAHIM
Managing Director/
President & Group Chief
Executive Officer
Average Revenue Per User (ARPU) YoY – validating
the successful execution of its strategy. Furthermore,
cost optimisation initiatives at Celcom led to a
commendable trend with Quarter on Quarter (QoQ)
EBITDA growth of 6%2 and an EBITDA margin uplift
of 2 ppt2 in the fourth quarter (4Q) of 2018, allowing
Celcom to kickstart 2019 with a healthier cost base.
Having said that, this is still an area that requires a lot
Axiata’s more work.
Due to the concerted efforts to improve its network
in the past three years, Celcom has since achieved
major progress in network availability and quality
– LTE and LTE-A coverage are now at 91% and 78%
respectively, delivering better video experience to its
customers. Identified as a key turnaround area back in
2016, Celcom has now shown significant improvement
in its distribution, achieving the number one position
in Dealer Satisfaction nationwide in 2018. Since 2016,
its relentless focus on driving organisational and digital
transformation has also produced encouraging results.
In parallel, Celcom continues to be recognised for its
customer centricity, taking the top spot in Net Promoter
Score and being recognised by Forbes as one of the
“Top 10 Most Customer-Focused Companies in Asia”.
Meanwhile, XL is a great example of the competition
punching above its weight. Despite the industry
being mired by hyper competitive pressures from
the mandatory prepaid SIM registration in 2018, XL’s
consistent strategy execution delivered exceptional
results. In a market which saw 84 million subscribers
wiped out in 2018, XL managed to beat all its peers in
Indonesia as the only MNO to have grown subscribers,
revenue and EBITDA by 2.6%, 0.4% and 2.3%
respectively.
The continued investment in XL’s 4G network
significantly improved both the user experience as well
as the economics of providing mobile data services,
especially in ex-Java. Its 4G coverage has now expanded
to around 400 cities and areas, leading to double-
digit growth in subscribers and revenue for ex-Java.
Unsurprisingly, XL ended the year as the most data-
centric operator with 80% smartphone penetration and
82% data revenue contribution (4Q 2018).
At the same time, XL’s Dual Brand Strategy continues
to track well with both XL and Axis brands recording
all-time high Net Promoter Scores in 2018. At the
Frost & Sullivan 2018 Asia Pacific ICT Awards, XL was
even recognised as the “Best Asia-Pacific Mobile Data
Service Provider of the Year”.
Moving forward, Celcom, XL, as well as our remaining
OpCos will be placing additional emphasis on improving
profitability by delivering ambitious cost savings targets
and “sweating” their network to extract maximum value
from existing sites. Additionally, we have identified
three New Growth Areas which are expected to deliver
double-digit growth for our Digital Telco pillar over the
next few years. This includes aggressively capturing the
Home segment, expanding our reach in the Enterprise
segment and growing the high-margin digital value-
added services revenue stream.
In summary, I am confident that all the stars have finally
aligned for both Celcom and XL to return to their peak
performances and stake a much stronger position in
their respective markets.
B
FUTURE PLANS
4
Can you elaborate on Axiata’s vision and
strategy to be the New Generation Digital
Champion, and how have you progressed?
TSJI: I am going to give a long answer to this as we have
progressed quite a lot over the last 12 to 18 months.
Our foundational response to the challenge was to
define our Triple Core Strategy, supplemented by
a Digital Transformation across all our businesses
and operations. Let me first address the Triple Core
Strategy:
1. Transformation of our predominantly mobile
operations into converged digital operators with
leadership positions across Consumer, Home and
Enterprise segments
2. Transformation of our three core digital business –
Digital Financial Services (DFS), Digital Advertising
and Digital Platform to be candidates for “Unicorns”
3. Transformation of our tower business, edotco, to be
a world-class player and one of the top five globally
I am proud to say we have made significant progress:
1. In four of six markets, we have moved our operations
from being MNO-focused to becoming converged
multi-play services providers across fixed services
delivery combined with video and content services.
Some are ahead of their plans, but some are a bit
behind
2. Our focus on Enterprise Business has accelerated
and we are elevating competencies across all
markets. Similarly, some are ahead of their plans and
others, a bit behind
3. Our three digital businesses have grown exponentially
over the last few years:
a. Our Digital Advertising business, ada4, is today
one of the largest independent digital marketing
agencies across Asia, servicing over 200 large
accounts globally. The investment from Sumitomo
Corporation and ensuing valuation provided
further momentum in its ambition to become
the leading integrated digital advertising firm in
Southeast Asia by 2022
b. Boost, our flagship DFS business is by far the
largest e-wallet in Malaysia, in terms of users
and merchant base. It continues to record
healthy uptrends in both areas, recording 6x and
24x growth respectively. By end 2018, it had
3.5 million users, and over 61,500 merchants.
Transaction value per user has grown 11x since it
first started. Boost is also available in Indonesia,
where it is focused on merchant services, and has
grown its base to more than 458,000 merchants
as at end 2018
We are confident of retaining our leadership
position in ASEAN and South Asia, in addition
to seeing promising growth and definitive
profit improvement moving into 2019
c. Apigate, our digital enablement platform
expanded its global reach in 2018 through
partnerships with telco groups such as Zain and
Etisalat, Tencent and Gameloft, giving it access
to 3.5 billion consumers and over 110 MNOs,
compared to 350 million consumers and eight
MNOs in 2017. It is a truly global player, with future
ready APIs on one seamless platform allowing
businesses to scale globally for SMS, location
services, e-wallet and operator billing. Having
consolidated the business, we have seen a rapid
rise in YoY gross transaction value at 3.1x and net
revenue at 4.8x
d. Additionally, we have also signed up to transfer
our non-core digital ventures investment portfolio
at a value of USD140 million to a private equity
firm, which we are targeting to conclude within
Q2 2019
4. edotco has secured a robust position as a strong
challenger in the global towerco market, now the
third fastest growing towerco among global peers.
It has also expanded its footprint to cover six
countries including a recent expansion in to Pakistan,
with more than 29,800 towers
Our Digital Transformation Strategy focuses on driving
improvements through the adoption of IR 4.0 principles.
We conduct both external and internal validation to
track our progress. While acknowledging we have
a lot more to do, I am happy to report that we have
progressed significantly from where we started in 2017:
1. Digital Products and Services
This involves transforming our product and service
portfolio to include a rich suite of digital offerings,
with a focus on simplicity of use. We currently
estimate improvements in this area by approximately
70%
2. Transforming our External Interface and Internal
Processes
The transformation of external interfaces through
which the above products and services are
delivered to our customers and partners ranges from
customer touchpoints to digital engagements with
channel partners, suppliers and external networks.
In addition to that, we have also worked hard to
radically simplify and digitise our internal processes.
Since 2017, we have recorded between 45% and
50% progress on both these fronts
3. Transforming our Infrastructure & Platforms
Complete modernisation and digitisation of our
network, IT and platforms involves new architecture,
making them all Internet Protocol (IP), virtualisation
and mostly software-driven, ensuring we pre-empt
the demands of IR 4.0 as well as of advanced forms
of video communications to include Augmented
Reality (AR) and Virtual Reality (VR). Today we have
enhanced the digitisation of our infrastructure and
platforms by 30%
4. Organisation, Culture and Mindset Transformation
Right at the core of an organisation is its people
and culture. Digital Transformation would not be
successful without a completely modern workforce,
organisation culture and mindset. We call it a
Modern, Agile and Digital, or a M.A.D. organisation.
We have achieved good momentum, improving by
40% in our internal metrics for an Agile workforce
5
With the disposal of M1 and the
reclassification of your investment in
Vodafone Idea as non-strategic, what is
the effect to Axiata’s regional ambitions?
Are you looking for more footprint
expansion?
TSJI: Whilst we recognise the importance of
footprint, we do not measure ourselves purely from a
footprint perspective. Having said that, despite the M1
divestment, Axiata today still operates in 11 countries
across ASEAN and South Asia, more than when we
first started.
In terms of scope, we have also expanded significantly
from the days of offering pure-play mobile
communications services as our businesses have
transcended beyond mobile services to now include
digital and infrastructure businesses.
In terms of size, we have in fact grown 2.4 times
compared to 10 years ago and in terms of reputation,
Axiata at present is a far more accomplished
multinational company respected by global peers and
a recipient of numerous regional and global awards.
On future plans for footprint expansion, it all depends.
We are not looking into new footprint expansion for
our core mobile services. However, for edotco, we are
aggressively exploring organic and inorganic growth
opportunities, but within ASEAN and South Asia. For
DFS, we will restrict to our existing footprint but for
Digital Advertising and Digital Platform businesses,
we plan to be Pan-Asia regional and global players
respectively.
6
Axiata is known for its focus on people
management. What are your plans to
ready the organisation for the challenging
environment?
TSJI: We are absolutely focused on people management
and very proud of “putting our money where our
mouth is”. In fact, more than just money, we spend
considerable management time and effort in this area.
I personally invest a huge amount of my time in this
area and have made ‘people development’ a priority in
my role at Axiata.
By year end 2018, we had a pool of 174 top management
talent and 513 middle management talent. From a
mere 22% of our top leadership positions being filled
internally during our first year of operations, by end
2018, we grew this to 83%. Seven out of nine CEOs
of our major OpCos have been internal appointments.
Since 2009, we have spent RM178 million purely on
talent development programmes, to support what I
call, our “Talent Factory”.
However, as good as we are in people management,
we need to revamp almost everything that we have
done before. While we started work as far back as in
2015/16, in 2018, we formalised the concept of M.A.D.
This requires modernising our performance
management systems and compensation structure,
reshaping our leadership competencies, talent
management and development programmes, and,
revamping our organisation and many others.
By 2018, we did all the above. We experimented
with a new performance management system called
“IGNITE” where we relooked our short and long-
term compensation incentives and structures to be
implemented in 2019. We also enhanced our four
leadership competency quadrants, modified our
talent and development programmes, launched Axiata
Academy with a pilot in Celcom involving intelligent
learning technology platform, and changed the
organisation structure at many OpCos.
We also implemented the Axiata Analytics Centre
and Axiata Digital Labs with the aim of attracting
and developing digitally-skilled talents to support our
growth areas across the region.
7 What are your 2019/2020 plans? Will they be
any different from the past?
TSJI: Firstly, the operational progress and momentum
gathered from the Group’s 2018 performance will
provide us with a significant boost to pave the way
for a “promising” 2019. In fact, some of the very issues
that made the headlines in 2018 will help us materially in
2019 especially in the following aspects:
1. With all OpCos growing market share and delivering
the best revenue performance in their respective
markets, we exited 2018 with a strong market
position to meet our 2019 targets. Following two very
successful years in delivering operating expenditure
(opex) and capex savings through our internal cost
optimisation programme, we are on track in our
journey to continue improving our cost base, and
meet our RM5 billion cumulative savings target by
2021
2. Our OpCos had delivered significant progress in
digitising critical areas including Products and
Services, Internal Processes, Infrastructure and
Platform, as well as Organisation and Culture. With
each of our OpCos now outperforming their in-
market peers in terms of digital maturity, we are
optimistic our continuous improvements in this area
will serve as a competitive advantage in our markets
3. With the efforts and progress made in 2018, each of
the new growth areas we identified in our Triple Core
Strategy are now expected to generate double-digit
growth in 2019:
a. Digital Telco: In addition to Dialog, in 2018 we
launched Home/Converged offerings in Celcom,
XL and Smart – predominantly via fixed wireless
access (FWA). This allows us to leverage on our
existing mobile network for further upsides through
cross-selling to existing customers. In capturing the
Enterprise segment, we have built a strong sales
funnel for actualisation in 2019 and refined our
strategy through our 2018 key learnings
b. New Digital Businesses: Boost, ada and Apigate
exited 2018 with exponential top-line growth and
are expected to maintain this exciting momentum
in 2019 and beyond. Each of these core digital
businesses are now on an encouraging path
towards profitability by 2020/2021
c. Infrastructure: With a consistent track record of
double-digit growth across all financial metrics
since its inception, we expect edotco to continue
its “towering” growth story in 2019 and beyond
4. The cash proceeds from the divestment of our stake
in M1 will strengthen our balance sheet, putting Axiata
in a more robust position to fund future growth
opportunities
5. The reclassification of our Indian asset as a pure
investment into the balance sheet means Idea’s
performance will no longer drag our profitability. In
fact, there are now more upsides given our belief in
the long-term future of the merged company
6. The strategic investments we secured for ada in
2018 acted as an external validation of our digital
investments, which may translate to further upsides in
Axiata’s valuation. Additionally, this cash investment
will help to fund the future growth of our digital
businesses and prepare them on a self-funded path
towards profitability by 2020/2021
While maintaining our long-term strategy and vision,
in 2019/2020 the Group will focus more on profitable
growth and cash generation relative to revenue growth
to strengthen our balance sheet and prepare for the
years ahead through our “Shifting Gear” initiatives
which covers these eight measures:
1. While expected to still deliver the industry revenue
growth in their respective markets, our OpCos will
target to grow their EBITDA and profit relatively
faster than revenue and therefore, improve their
respective profitability margins compared to 2018
2. Since the unveiling of the Group’s five-year Cost
Optimisation initiative back in 2017, close to RM3
billion worth of savings have been delivered over the
last two years. In 2019, our OpCos will continue to
drive opex and capex efficiency in each market with
the long-term goal of achieving a cumulative savings
of RM5 billion by 2021
3. To improve profitability over the next two years, the
Group will have to reprioritise new investments with
long payback unless we can find ways to moderate
any short-term negative profit impact due to the
upfront Investment
4. To lower our risk and exposure, we will explore
if these investment opportunities can be funded
through strategic partnerships or financial investors
5. Following ada’s success in securing a valuation
and the M1 divestment, we will continue to review
the prospects of monetising some of our existing
investments for cash and validation without
compromising our long-term growth aspiration.
Additionally, a key priority for all OpCos is to focus on
“sweating” existing assets to extract more value from
each dollar of capital already deployed
6. While we deliver further operational improvements in
2019, the changes in our industry landscape urgently
necessitate structural changes over the long-run such
as in-market consolidation and network sharing to
preserve industry sustainability and at the same time,
meet customers’ satisfaction. We will continue to
actively evaluate such opportunities
7. We undertook a major impairment in 2018
by sunsetting legacy assets which will give us
Depreciation and Amortisation (D&A) savings of
approximately RM150 million per year
8. Correspondingly, the 2019 scorecard/KPIs for the
Group as well as our OpCos have been aligned to
reflect the 2019/2020 “Shifting Gear” priorities
8
With the challenging industry landscape,
what can Axiata do to increase its
shareholders’ value?
TSJI: Volatilities in the current industry landscape and
macroeconomic environment have certainly made
it more difficult to strike a balance between short-
term profitability and long-term growth. Nevertheless,
Axiata is confident we can achieve this balance and
increase shareholders’ value with our 2022 vision,
strategy and execution capabilities.
Basically, to increase our shareholders’ value, we must
execute our Vision and Triple Core Strategy diligently
and in a timely manner. Effectively, these are our eight
strategic initiatives:
1. First and foremost, in addition to strong operational
performance in all OpCos, we must step-up profitability
and return on investment. Cost optimisation is going
to be key, hence, our aim to reduce costs by RM2
billion the next three years is critical. Our Return on
Invested Capital (ROIC) in all our OpCos must be
higher than their respective Weighted Average Cost
of Capital (WACC) by 2021/2022
2. Strong growth momentum must be retained across
existing businesses with tangible contributions
from new growth areas to our top-line – Home
Broadband, Enterprise Segments and Digital
Businesses. Fortunately, by 2018, our infrastructure/
tower business has already been a sizeable
contributor to our revenue and profitability
3. All our operational drivers such as Network, IT,
Distribution, Products and Services, and Customer
Services should be superior or at least at par to
our nearest competitor but the digitisation of our
operations and organisations should clearly be
better than others
4. Our business model and competitive difference
should be very clear for each OpCo to ensure
sustainable market performance
5. While operational performance is very important,
it might not be sufficient. Some degree of industry
consolidation and rationalisation in most markets is
required and not just within the mobile industry, but
also within the broader converged industry – with or
without us
6. Our corporate portfolio will be restructured for
optimum capital allocation for both sustainable and
moderate growth and dividends
7. For long-term success, we must ensure strong
commitment to sustainability and exemplary
corporate citizenry
8. Lastly, we must evolve our whole organisation from
being a traditional telco to a Modern, Agile and
Digital (M.A.D.) organisation
I am confident if we do all the above, we will enhance
our shareholder value in a healthy, sustainable and
responsible manner.
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 14

Integ rated Annua l Repor t 2018

In Conversation with the President & Group CEO

Axiata Integ rated Repor t 2018 | Ou r Bu s i ness

AXIATA IN 2019:

“Shifting Gear” towards

Profitability and Cash Focus
1 Focus on profit growth relatively more than revenue market 5 Monetise existing investments for cash and validation; and
share growth ‘sweat’ existing assets

Spotlight on opex and capex efficiency - RM5 billion savings Accelerate structural changes through industry consolidation,
2 6 network sharing and productivity initiatives
over five years

Reprioritise or re-scope some investments with long Aggressive Network and IT Modernisation to drive data
3 payback (unless short-term financial impact from upfront 7 leadership and improve its economics
investment requirement can be mitigated)

4 Fund investments in new growth areas mostly through 8 Reflect the above in 2019 KPIs for the Group and all OpCos
strategic partnerships or financial investors
 Integ rated Annua l Repor t 2018

Management Discussion and Analysis

GROUP FINANCIAL ANALYSIS 2018

During the year, Axiata successfully concluded its most massive portfolio rationalisation of M1 from an associate to assets held-for-sale and one-off non-cash asset write-off,
with reclassification of Idea from an associate to simple investment, reclassification impairment and accelerated depreciation as a result of network modernisation.

Revenue PATAMI

• In 2018, Ringgit Malaysia strengthened against all regional currencies leading to • Group’s PATAMI dropped to a loss position of RM5.0 billion as it absorbed the
an adverse forex translation impact for the Group. Group revenue declined 2.1% to one-off, non-cash, technical items mainly Idea-related losses of RM3.9 billion, the
RM23.9 billion RM1.8 billion assets write-off, impairment and accelerated depreciation as a result of
• At constant currency, Group revenue grew 6.2% for the year on the back of growth network modernisation primarily at XL and Celcom, and forex and derivatives losses of
from most of its subsidiaries RM0.5 billion
• All six OpCos delivered highest revenue growth in their respective markets. • Adjusting for one-off items, Group normalised PATAMI stood at net profit of RM1.0 billion
edotco and Dialog, in particular, achieved double digit growth of 13.3% and 15.9% • The diagram below depicts the bridging of 2018 PATAMI results to normalised
respectively at constant currency PATAMI and underlying PATAMI:
• Data continued to register a strong growth and contributed 51.8% of service Assets
revenue which increased 6.4 percentage points (ppt) from 45.4% in 2017 write-off,
impairment & Forex &
Idea-related accelerated derivatives Normalised MFRS Forex Underlying
PATAMI losses depreciation losses Others PATAMI 15 & 9 translation PATAMI

EBITDA
0.5 0.2 0.06 0.1 1.2
• As consequence of the strengthening Ringgit Malaysia, Group EBITDA declined 1.0
RM billion
9.7% from RM9.2 billion to RM8.3 billion, while EBITDA margin retracted 2.9 ppt
from 37.8% to 34.9%
• Excluding foreign currency translation impact, drop in EBITDA narrowed
to 1.0% 1.8
• Four OpCos recorded the highest EBITDA growth in their respective markets

-5.0 3.9

Cost Optimisation

• In 2018, the Cost Optimisation programme incrementally delivered RM1.5 billion of savings and avoidance across the Group, aided by over 175 distinct initiatives
• The programme has been carefully balanced between capital expenditure (capex) and operating expenditure (opex), with each contributing nearly 50% of overall savings delivery
• While most of these savings originated from the Network domain (capex and opex), traction is building up from digitisation, IT and sales and marketing, reflecting well for the future
• On profit and loss impact for 2018, the programme has helped expand (underlying) EBIT by 2.7%, which in turn, has mitigated the impact of the Group’s network and other
investments (on a constant currency basis)
• The Group continues to progress well on the RM5 billion goal by 2021, having achieved more than half the target within the first two of five years

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 15
 Our Business Statements and Analysis
Management Discussion and Analysis
GROUP FINANCIAL POSITION
As at 31 December 2018, the Group’s balance sheet held up steadily against the barrage of external challenges to maintain its strong investment grade rating with gross debt/
EBITDA of 2.3x, and a solid cash position of RM5.1 billion.
Key Highlights of Group Balance Sheet
Total equity decreased by RM7.3 billion
• Total equity stood at RM23.2 billion
• The decrease in equity balance in 2018 was
caused by:
- Loss for the financial year of RM5.2 billion
- Negative impact to reserve from:
- Dividend of RM0.9 billion;
- Negative translation impact of
investment in subsidiaries and associates
amounting to RM1.4 billion;
- Revaluation of Idea post reclassification
as simple investment of RM0.6 billion;
- RM101.7 million adjustment arising from
the adoption of MFRS 15 and MFRS 9; and
- Partially negated by gain on partial
disposal and dilution of subsidiaries of
RM0.8 billion
Total assets decreased by RM6.1 billion
• Total assets balance stood at RM63.9 billion
• Intangible assets decreased by RM1.2 billion
due to:
- Amortisation of intangible assets of
RM836.8 million and further diminished by
RM839.1 million from translation;
- Adjustment of RM192.5 million from
adoption of MFRS 15; and
- Partly offset with intangible asset from
newly acquired subsidiary and additions
during the year amounting to RM132.5
million and RM502.8 million respectively
• Property, plant and equipment increased by
RM380.5 million driven by:
- New capital investments on
telecommunication network; and
- Partially netted off with depreciation,
impairment, written off and foreign
exchange translation losses during the
financial year which include RM1.8 billion of
one-off assets written off, impairment and
accelerated depreciation
Our Strategy The Value We Create
• Associates decreased by RM7.7 billion to
RM266.5 million due to:
- reclassification of Idea from associate to
Financial assets at fair value through other
comprehensive income; and
- reclassification of M1 from associate to
Assets Held-for-sale
• As a result of adoption of MFRS 15, the Group
recorded contract assets of RM0.2 billion
• Deposits, cash and bank balances decreased
by RM1.7 billion to RM5.1 billion mainly due to
cash outflow from investing activities
Gross liabilities increased by RM1.2 billion
• Total liabilities stood at RM40.6 billion
• Gross borrowing reduced by RM54.2 million to
close at RM19.1 billion due to loan repayments
and foreign exchange translation, partly
offset against new loan
• Trade and other payables increased by
RM1.2 billion arising from network investment
• As a result of adoption of MFRS 15, the Group
recorded contract liabilities of RM1.3 billion
which include deferred revenue reported
previously
Cash Position and Dividends
• The Group cash balance remained healthy
and stable at RM5.1 billion
• As compared to 2017, the decrease in cash
balance by RM1.7 billion was the result of:
- cash dividend payment
- capital investment in network
- repayment of loans
• Based on normalised performance, the
Board of Directors had, on 22 February 2019
declared dividend of 4.5 sen per ordinary
share making total dividend of 9.5 sen, which
represents dividend payout ratio of 85%
Our Performance Our Governance Other Information 16
Integ rated Annua l Repor t 2018
Capital Investments Capital Structure and Capital Resources
• The Group has spent RM6.1 billion, or 26% of • The Group’s debt to equity gearing ratio
revenue in capital asset investment for the (gross Group borrowings over Group’s
year to support its continuous growth. These total equity) recorded at 0.82x as at
investments were sourced from internal 31 December 2018 compared to 0.63x the
generated funds previous year
• In line with the vision to be the New
Generation Digital Champion, the Group is Capital Allocation and Balanced Portfolio
continuing with the execution of the Axiata
3.0 Triple Core Strategy comprising of three • Axiata continually strives to maximise
pillars, namely Digital Telco, Digital Business shareholders return, with an approach of
and Infrastructure balancing portfolio within the Triple Core
• In the short-term, the Group is placing an Strategy
immediate emphasis on “Shifting Gear” • Capital is allocated in line with the strategy,
towards profitable growth and cash focus which in 2018 predominantly focused on
• Axiata’s focus will be on the following: portfolio rationalisation
- Capex and opex efficiencies; • The Group follows a balanced approach
- Reprioritisation and monetisation of towards moderate growth and moderate
investments; dividend
- Acceleration of structural changes to
achieve an optimal portfolio spanning the
core business, Enterprise, Home, digital
business and infrastructure;
- Higher profit growth relative to top-line,
reflecting the rigorous cost optimisation
programme to exceed the RM5 billion cost
target for the period spanning 2017 till
2021; and
- Continue legacy objective to win the
market whilst sweating its assets
• In the meantime, the Group remains cautious
of challenges in the telco industry and macro
landscape, with heightened regulatory,
political and competitive environments
expected in some of the Group markets
of operation, in addition to the prolonged
uncertainties on global and regional
economic outlooks
 Integ rated Annua l Repor t 2018

Management Discussion and Analysis

KEY PERFORMANCE INDICATORS

On 22 February 2018, the Group announced its Headline Key Performance Indicators (KPIs) guidance for the financial year ended 31 December 2018. The Group’s 2018 Headline
KPIs announced were as follows:

FY 2018 FY2018 FY2018 FY2018 FY2018

Statutory Headline KPIs Achievement Headline KPIs Achievement
Headline KPIs
Post MFRS 15 & 9
Pre MFRS 15 & 9 @ Bloomberg rate Pre MFRS 15 & 9 @ constant currency
@ actual currency
Revenue Growth (%) -2.1% Flat -4.4% 6.3% 3.7%
EBITDA Growth (%) -9.7% Flat -6.1% 5.8% 2.0%
Return on Invested Capital (“ROIC”) (%) 1.3% 4.8% - 5.2% 5.4% 5.0% - 5.5% 5.6%
Return on Capital Employed (“ROCE”) (%) 1.2% 4.1% - 4.6% 4.7% 4.5% - 5.0% 4.9%

Note:
Constant rate is based on the FY17 Average Forex Rate (e.g. 1 USD = RM4.30), Bloomberg rate is based on 2018 Forex Forecast as at 24th January 2018 (e.g. 1 USD = RM3.90)

2018 has been a challenging year for the Group. On a Statutory basis, the Group posted Revenue
and EBITDA growth of -2.1% and -9.7% Year on Year (YoY), while ROIC and ROCE stood at 1.3%
and 1.2% respectively.
Externally, the Group was materially affected by the strengthening of the Ringgit Malaysia which
resulted in lower translated results, as well as from the adoption of Malaysian Financial Reporting
Standards 15 and 9 (MFRS 15 and 9). The Group also recorded losses from Idea investments and
one-off assets write-off due to modernisation and technical obsolescence.
From August 2018, the Group has guided the market based on Adjusted Headline KPIs, which
excludes the impact from Deodar (acquisition in Pakistan) uplift and Idea related losses. On a like
for like basis, the Group’s FY2018 underlying achievement is above the Adjusted Headline KPIs
(post normalisation from forex translation losses, MFRS 15 and 9, all Idea related losses, assets
write-off and restructuring costs i.e. Celcom Employee Life Plan (ELP)).

On the back of a declining industry in Malaysia, Celcom gained revenue market share in FY2018.
FY2018 FY2018
Meanwhile, XL weathered the SIM registration impact significantly better than peers, with top-line
Adjusted Headline KPIs Adjusted Headline KPIs Underlying Achievement
growth in a contracting Indonesian market, demonstrating its successful transformation agenda
(Pre MFRS 15 & 9 @ constant currency) and uplift from its expansion outside Java. Dialog and Robi recorded impressive Revenue and
EBITDA growth, whilst Ncell, Smart and edotco continued to deliver excellent performance. Digital
Revenue Growth (%) 2.8% 3.7%
Businesses however, impacted the Group’s profitability, but tracked better than expected.
EBITDA Growth (%) 1.7% 2.0%
ROIC (%) 5.0% - 5.5% 5.6%* Overall, Axiata recorded good underlying performance, pushed by its Group-wide cost initiatives
ROCE (%) 4.3% - 4.8% 4.9%* which delivered RM1.5 billion optimisation, well ahead of 2018 target of RM1.4 billion, in this difficult
year.
Capex** RM7.2 billion RM6.7 billion

Notes:
* Achievement based on exclusion of all Idea related losses
** Capex is not a headline KPI

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 17
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 18

Integ rated Annua l Repor t 2018

Management Discussion and Analysis

INVESTMENT PERFORMANCE
SHARE PRICE PERFORMANCE (2018)((2018)2018

Axiata Axiata closed 2018 as the tenth largest company on the

FBMKLCI FBMKLCI in terms of market capitalisation at RM35.6 billion.
(RM)
From 2009 to 2018, Axiata’s share price had increased 59%
6.00 1,950
while the FBMKLCI had increased 93%.
1,900
5.00 In 2018, Axiata’s share price dropped 28% to close at RM3.93
1,850 on 31 December 2018, underperforming the FBMKLCI which
decreased by 6%.
4.00 1,800

1,750 Foreign shareholdings increased marginally to 10.5% as at end

3.00 2018, compared to 10.0% in the preceding year.
1,700
Axiata’s share price performance during the year was largely
2.00 1,650 impacted by external headwinds. A challenging operating
1,600
environment for telecommunications players in the region also
1.00 weighed on Axiata’s share price performance in 2018.
Axiata FBMKLCI 1,550

0.00 1,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SHARE PRICE PERFORMANCE (2009-2018)

Axiata
FBMKLCI
(RM)
8.00 2,000

1,800
7.00
1,600
6.00
1,400
5.00
1,200

4.00 1,000

800
3.00
600
2.00
400
1.00 200
Axiata FBMKLCI
0.00 0
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
 Integ rated Annua l Repor t 2018

Management Discussion and Analysis

PRUDENT AND DISCIPLINED DIVIDEND PAYOUT

Axiata declared a 9.5 sen per share single tier dividend (including interim dividend of 5 sen per share
paid last year) in respect of the financial year ended 31 December 2018, implying a Dividend Payout
Ratio (DPR) of 85%. 2018 Dividend Per Share (DPS) of 9.5 sen is modest but higher than 2016 of 8.0
sen and 2017 of 8.5 sen.
The Board remains committed to our:
Dividend policy: The Company intends to pay dividends of at least 30% of its consolidated
normalised PATAMI and endeavours to progressively increase the payout ratio over a period
of time, subject to a number of factors including business prospects, capital requirements and
surplus, growth/expansion strategy, considerations for non-recurring items and other factors
considered relevant by the Board
Investor proposition: Our value proposition to investors of “moderate growth and moderate
dividend”

One-off Special
Step increase in DPR Dividend, on top of Increase in DPR, in Increase in DPR, in Increase in DPR, in Decrease in DPR for Increase in DPR, in Increase in DPR,
Inaugural dividend with the growth in increased ordinary line with progressive line with progressive line with progressive prudent and strategic tandem with strong back to 2015 level as
announcement Group Net FCF DPR dividend policy dividend policy dividend policy reasons overall performance committed

Dividend Yield = 2.1% Dividend Yield = 3.9% Dividend Yield = 5.5% Dividend Yield = 3.3% Dividend Yield = 3.2% Dividend Yield = 3.1% Dividend Yield = 1.5% Dividend Yield = 1.7% Dividend Yield = 2.1%
Total Dividend = Total Dividend = Ordinary Dividend = Total Dividend = Total Dividend = Total Dividend = Total Dividend = Total Dividend = Total Dividend =
RM0.9bn RM1.5bn RM1.9bn RM1.9bn RM1.9bn RM1.8bn RM0.7bn RM0.8bn RM0.9bn
DPS2 = 10 sen DPS = 19 sen Ordinary DPS = 23 sen DPS = 22 sen DPS = 22 sen DPS = 20 sen DPS = 8 sen DPS = 8.5 sen DPS = 9.5 sen
Special Dividend =
RM1.0bn
Special DPS = 12 sen
Total DPS = 35 sen

84% 85% 85%

75%
70% 64%
60%
50%

30%
DPR1

2010 2011 2012 2013 2014 2015 2016 2017 2018

¹ DPR - Dividend payout ratio

2
DPS - Dividend per share

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 19
 Our
Strategy
 Integ rated Annua l Repor t 2018

Our Long-Term Strategy Towards Digital Market Leadership

• Guided by the Axiata 3.0 strategic blueprint, the Group is currently focused on executing our
Triple Core Strategy to become a globally competitive Digital Champion in the IR 4.0 era
• Eight Needle-Moving Strategic Initiatives were identified within the Axiata 3.0 playbook to
generate outcomes aligned with our New Generation Digital Champion ambition, including the
execution of a Group-wide Digital Transformation Strategy which pervades all aspects of our
business and operations to drive end-to-end digitisation
• Without taking our foot off the pedal in delivering our long-term goals, in the short-term, the
Group will prioritise profitable growth and cash focus between 2019-2020 through our “Shifting
Gear” initiatives as part of our commitment to maximise value creation in an increasingly
challenging business landscape

AXIATA 3.0: BECOMING A NEW GENERATION DIGITAL CHAMPION BY 2022

Our Purpose of Advancing Asia Our UI.EP Values Our 4P Goals

Triple Core Strategy

Digital Telco Digital Businesses Infrastructure

LONG-TERM STRATEGY SHORT-TERM FOCUS

Financial Capital

Natural Capital
2016-2022 2019-2020
Eight Needle-Moving Strategic Initiatives “Shifting Gear” Initiatives

1. Operational Performance and Cost Optimisation
2. New Growth Areas
3. Functional Superiority and Digitisation
4. Distinct Competitive Differentiation and Clear New
Business Model
5. Industry Restructuring and Rationalisation
Human Cap i ta l
1. Focus on profit growth relatively more than revenue
market share growth
2. Spotlight on opex and capex efficiency
3. Reprioritise or re-scope some investments with
long payback
4. Fund investments in new growth areas mostly
through strategic partnerships or financial investors

c t ured Capital
6. Optimum Portfolio 5. Monetise existing assets to extract more value

7. Sustainability and Stakeholder Management 6. Accelerate structural changes

(incorporating Regulatory, Digital Privacy and Trust,
and Cyber Security) 7. Aggressive Network and IT Modernisation

8. Organisational and Cultural Changes 8. Reflect the above in Key Performance Indicators

fa
u
Intellectual Capital Social & Relationship Capital Man

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 21
 Our Business Statements and Analysis Our Strategy The Value We Create
Operating Environment
Axiata operates in a complex environment exposed to macroeconomic and geo-political shifts, a tightening regulatory landscape, rapidly evolving telecommunications and technology trends, and
disruptive competition, among others.
Operating Environment
Macroeconomic Global growth estimated at 3.9% in 2018, with increasing risks to
Environment the outlook for 20191:
Increased growth anxieties in Asian emerging markets as
spillover effect of US-China trade policy tensions
Forex volatilities where the Ringgit Malaysia strengthened
against regional OpCo currencies, whilst at the same time
depreciating against the US Dollar
Regulatory Axiata’s regional OpCos operate within differing regulatory
Environment environments impacted by various factors:
Regulations pertaining to Cyber Security, Data Protection and
Customer Privacy
Changing taxation structures and doing business fees to
accommodate needs of emerging markets
Political shifts in operating markets
More stringent environmental regulations aimed at reducing
radiation emissions from base transceiver stations (BTS)
Internalising It will be necessary for telco players to shift their operating models,
the Digital processes and organisational culture to cope with the proliferation
Shift of Fourth Industrial Revolution (IR 4.0) technologies and related
developments in order to remain competitive
Competitive Telco companies operate in an environment rife with
Landscape hypercompetition and structural challenges:
The onset of IR 4.0, explosion in demand for data and
technological disruptions by non-telco players such as Over-The-
Top (OTT) players contribute to an overwhelmingly competitive
environment
Overcrowding in the telco industry in some markets is expected
to further pressure telco players’ bottom lines in countries such
as Malaysia, Indonesia and Sri Lanka
Technology Commercial deployments of 5G technologies have begun in more
Shifts developed markets such as the US, Korea and Australia, and 5G
smartphone releases have been announced by major manufacturers.
IoT devices, custom business application and use cases will soon
emerge. Key factors constraining rapid 5G deployment in emerging
markets include access to affordable and sufficient spectrum, and a
weak business case for deployment in markets where 4G is still only
just reaching mass market adoption and coverage
Note:
1
World Economic Outlook Update, July 2018, published by the International Monetary Fund
Our Performance Our Governance
Implications for Our Strategy
• Exposure to unfavourable forex translation from
regional OpCo contributions, and forex and
derivatives losses
• Efficient cost management and optimum capital
allocation is required to enable long-term growth
• Axiata employs studies on the impact of
our businesses and corporate responsibility
initiatives in all in-country engagements with
policy makers and regulators
• Ensuring high levels of Cyber Security, Data
Protection and Customer Privacy Group-wide
to inspire customer trust and maintain network
integrity
• In order to maintain market relevance, the Group
has to adopt and embed rapidly evolving IR 4.0
technologies to capture growth opportunities
in our Triple Core Business segments
• In addition to achieving cost competitiveness
and efficiencies, it is becoming increasingly
critical to identify collaboration and partnership
opportunities to adapt in this competitive
environment
• Tapping into explosive data growth trends by
expanding our digital product portfolio, as well
as providing customers seamless connectivity via
network upgrades and enhancements
• 5G is the next evolutionary step in global mobile
connectivity, bringing ultra-fast, high capacity
and low latency broadband and IoT connectivity
services. This aligns with Axiata’s Digital Telco
business which is focused on converged telecom
and digital solutions for our Consumer, Home,
Business and Government customers
Other Information 22
Integ rated Annua l Repor t 2018
Way Forward
• Disciplined implementation of “Shifting Gear”
initiatives
• Continue to be a top performer in all metrics and
capture or retain market leadership
• Continue portfolio optimisation and rationalisation
in line with business goals
• Axiata is working with like-minded industry
partners to develop advocacy on issues and
topics related to the digital economy and digital
technologies
• Proactive engagements with relevant
stakeholders including regulators and
governments
• Disciplined execution of Group-wide Digital
Transformation Strategy
• Leveraging on Internet of Things (IoT) capabilities
within the Group to capture high growth
opportunities in Home and Enterprise segments
• Developing the three core digital businesses
towards profitability by 2022
• To continue investing in network modernisation to
offer best-in-class connectivity for customers
• Offer a clear and distinctive value driven customer
proposition through product leadership and
leading the way in innovative data-led products
via collaborative opportunities and partnerships in
the marketplace
• In the medium-term, Axiata will follow a 5G “hot-
spot” approach in 5G deployment combined with
continual upgrading of the existing 4G networks
to 4G LTE AdvancedPro with 5G plug-ins
• To explore 5G network sharing models to address
some of the business challenges
 Integ rated Annua l Repor t 2018

Stakeholder Engagement

Axiata’s continuous value creation efforts take into consideration our interactions and engagements
with a diverse base of stakeholders across our regional footprint in ASEAN and South Asia. In
developing and maintaining strong relationships, we take into account the Group’s multiple roles
within our different groups of stakeholders, including being an employer, communications provider,
technology innovator and infrastructure developer. We engage our stakeholders through various
channels on an annual basis. Details of our engagements for the year 2018 can be found in our
standalone Sustainability and National Contribution Report (SNCR) 2018, as well as our website at
www.axiata.com
In addition to these engagements, in 2018 we undertook a structured process to prioritise our
stakeholder groups. The purpose of this exercise was to gain deeper insights into the nature of the
relationships we have with our stakeholders and identify the Group’s key stakeholders. For further
information on our Stakeholder Prioritisation Exercise, please refer to the SNCR 2018.
The prioritisation exercise provided greater clarity on the degree of influence and dependence
our stakeholders have on our business. Based on this, we were able to more effectively understand
investor concerns as well as respond to legitimate needs and interests. The top seven priority
stakeholder groups identified through this exercise were the Senior Management Team, Investors
and Shareholders, Board of Directors, Regulators and Government, Employees, Business Partners
and Customers.
In addition, Axiata, facilitated by an independent sustainability consultant, engaged our seven key
stakeholders through a survey to gauge their perception and views on the relative importance of
an array of matters which the Group should focus on, which was also a step within our materiality
assessment process. Apart from providing an effective platform to address stakeholders’ needs and
concerns within the context of our operations, the survey provided an opportunity to exchange
views and ideas, and explore new opportunities. We engaged a total of 120 stakeholders from
these seven stakeholder groups.
As our different stakeholder groups are concerned with specific and particular matters, and have
diverse ideas about what creates the most value, we understand these matters cannot be treated
separately but rather as a coherent whole to the entire business. Descriptions of how the Group
has taken into account and responded to the key stakeholders’ legitimate needs and interests are
available in the SNCR 2018.

Highlights of insights we obtained from the stakeholder engagement

1 2 3 4 5
Senior Management Team Employees Investors/Shareholders and Customers Business Partners
and the Board of Directors Regulators/Government

Both stakeholder groups view
technological innovation, and the
development of new products
and services as priorities to ensure
network quality and coverage
which are essential components of
the Group’s main business
These diversified and new products
should also have the ability to
respond to current socioeconomic
and environmental needs
They are also focused on
maintaining the Group’s
competitive edge and ensuring
sustainable business growth,
including strategic investment
and partnerships to build on the
expertise of one another
Through the prioritisation process
and engagements, we recognise
that our employees are seeking for
us to provide them with a dynamic,
fair and safe working environment
in which they are able to grow and
develop, as well as maintain their
relevance in this ever changing
industry
We see the intrinsic relationship
between the satisfaction of our
employees and the satisfaction of
our customers
Both groups are concerned about This stakeholder group expects This stakeholder group expects
climate change, digital and online high-quality and diverse products good and long-lasting relationships
safety, and the empowerment of and services, and are concerned with Axiata, as we explore greater
the local community with non-failures in network opportunities collaboratively
Investors are now moving towards coverage and quick response to The focus is on industrial
impact investments which refer to complaints and concerns alliances and the consolidation
investments made into companies of industrial resources to jointly
that are able to generate a social promote innovations based on the
and/or environmental impact, technological advancements of 5G
and are therefore naturally and IoT
more concerned about social
and environmental impacts that
companies can make across their
entire value chain
Regulators and governments
too are concerned with these
matters, as they contribute to
their national priorities and goals,
and give access to digital services
to underserved and marginalised
segments of the populace

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 23
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 24

Integ rated Annua l Repor t 2018

Risks and Materiality

Management of Material Business Risks & Opportunities Our Risk Profile1

Magnitude of Impact
To drive our value creation efforts, Axiata uses an integrated
assurance methodology to manage our material risks, which Insignificant Minor Moderate Major Catastrophic
focuses on risk identification, along with the Group’s exposure
and potential impacts. Based on this, we identify mitigation
measures and opportunities which are aligned with our New

Certain
Almost
Generation Digital Champion ambition. The Group adopts
the Axiata Enterprise Risk Management (ERM) Framework as 5
a standardised approach for timely identification, reporting 10
and management of principal business risks and ensures 3
2
implementation, tracking and review of effectiveness of

Likely
4
11 7
mitigation actions for the risks identified.

Likelihood of Impact
Risk Governance Structure
9
1

Moderate
The Board of Directors is at the apex of our risk governance
structure, and is assisted by the Board Audit Committee in 6
8
evaluating the adequacy of our risk management and internal
control framework. A Board Risk Management Committee,
which is supported by the Group Risk Management

Unlikely
Department, oversees and assists our OpCos with the
adoption of appropriate mitigations for material risks raised at
OpCo level.
Rare

Category
1 Strategic and Investment Risk 5 Financial Risk 9 Governance and Integrity Risk
2 Geo-Political Risk 6 People Risk 10 Cyber and Data Privacy Risk
3 Regulatory Risk 7 Operational Risk 11 Digital Risk
4 Market Risk 8 Technology Risk

Legend
Extreme (E) Significant (S) High (H) Moderate (M) Low (L)

GA For detailed explanation on our management of material risks and opportunities, as well as our Risk Governance Note:
FS
Structure, please refer to the Statement on Risk Management and Internal Control in our GAFS 2018 1
The above Risk Profile reflects the aggregated risk rating across 2018
 Integ rated Annua l Repor t 2018

Risks and Materiality

Material Convergence Process

In 2018, Axiata harmonised the risk assessment and materiality processes by integrating our risk
assessment parameters as part of our materiality assessment. Additionally, we strengthened our
approach in conducting stakeholder engagements specific for materiality assessment purposes.
These efforts signify a key milestone in our journey towards cultivating integrated thinking Group-
wide. The convergent pathways and/or integration points between the Group’s business risks and
material matters are illustrated in the figure below. These material issues are centrally managed
through the implementation of our Eight Needle-Moving Strategic Initiatives and are discussed
in detail throughout the IAR 2018, SNCR and GAFS 2018. A comprehensive discussion of our
materiality assessment is disclosed in the SNCR 2018.

Our Key Business Risks

Cyber & Data Geo-political Strategic & Governance &

Financial Risk Market Risk Regulatory Risk Privacy Risk Digital Risk Operational Risk Risk Investment Risk People Risk Technology Risk Integrity Risk

Network Quality
& Coverage

Digital
Inclusion

Sustainable
Business Growth

Customer Service

Fair Employment
& Welfare
Material Issues

Talent
Development

Privacy & Data

Protection

Business Ethics &

Compliance

Supply Chain
Management

Digitisation &
Modernisation
Climate Action
& Environment
Management
Community
Impact/
Development

Convergent Pathways - Integration points between Group’s Key Business Risks and Sustainability Risks and Opportunities

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 25
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 26

Integ rated Annua l Repor t 2018

Risks and Materiality

Risks and Opportunities

The table below presents a summary of our most material business risks for the year 2018, along year, as well as linked each risk to our material issues. For a detailed dicussion on other linked
with mitigations taken, and opportunities identified arising from these risks. We have also defined material issues, please refer to the GAFS and SNCR 2018.
our risk levels, indicating if the risk has increased, decreased or remained stable from the previous

Risk Level
Mitigating Actions and Key Risk Link to
Risk Context and
Opportunities Arising Indicators Material Issues
Movement
Strategic Venturing into new growth areas to High level, • The Mergers and Acquisition Committee oversees all Return on • Sustainable business growth
and create additional revenue streams such as unchanged acquisitions and divestments, whilst maintaining a robust due Invested
Investment participating in digital and OTT initiatives, and since 2017 diligence process to evaluate and manage the potential risks Capital (ROIC) Other linked material issues:
investing in new markets and connectivity involved < Weighted • Digitisation and modernisation
services Average Cost • Network quality and coverage
• Risk Owner: Mergers and Acquisition Committee of Capital • Digital inclusion
(WACC) • Customer service
Geo- The Group operates in markets affected by High level, • Working closely with OpCos and leveraging on their local General • Business ethics and
Political political instability, civil unrest and other social unchanged expertise, knowledge and ability to continually assess the Election compliance
tensions since 2017 changing political scenario, with various measures in place to
ensure a timely response in the event of such occurrences Other linked material issues:
• Fair employment and welfare
• Risk Owner: OpCo Management • Talent development
• Community impact/
development

Regulatory The telecoms sector is subjected to a range
of rules and regulations by various regulatory
bodies. Telcos are subject to high tax rates
and significant spectrum acquisition costs in
auctions, in addition to multiple levies such as
service taxes, excise duties and Value Added
Tax (VAT)
High level, • Advocating strict compliance, and fair and transparent Change in • Business ethics and
unchanged practices of government policies regulatory compliance
since 2017 • Dedicated personnel and resources to constantly monitor regime due
all relevant developments, and maintain regular contact and to change in Other linked material issues:
relationships with the authorities government or • Climate action and
• Continuously enhancing process flows to encourage quick and introduction of environmental management
cost-effective responses to changing regulations new laws • Sustainable business growth
• Regularly engaging with regulatory officials to implement • Digital inclusion
sustainable regulatory regimes which will lead to the • Network quality and coverage
development of healthy regimes
• Participating in government consultations and industry
association events to foster collaboration and knowledge
sharing for best industry policies and practices

• Risk Owner: Group Regulatory

 Integ rated Annua l Repor t 2018

Risks and Materiality

Risk Level
Mitigating Actions and Key Risk Link to
Risk Context and
Opportunities Arising Indicators Material Issues
Movement
Market Our key markets are predominantly emerging High level, • Taking the necessary measures to drive efficiencies and ROIC < WACC • Network quality and coverage
markets generally characterised as being unchanged innovations by investing in new technologies • Digital inclusion
economically less developed, prone to since 2017 • Cost efficiency programmes • Sustainable business growth
economic uncertainties and sensitive towards • Establishing strategic ties with OTT and other digital product • Customer service
any changes in developed countries. Our developers to create products and services that meet
OpCos continue to be challenged by stiff price
evolving customer needs, increase the Group’s share of Other linked material issues:
competition with little certainty of possible
market consolidation in certain markets. customer wallet, retain customers and maintain our Profit • Digitisation and modernisation
In some markets, overall industry revenue After Tax
suffered a Year on Year decline
• Risk Owner: OpCo CEOs

Financial As a global player with presence across High level, • Axiata Treasury Management Centre oversees and controls 50:50 mix of • Sustainable business growth
11 countries, Axiata is exposed to foreign unchanged the Group’s treasury and funding matters, and develops local currency
currency exchange volatilities which could since 2017 hedging strategies governed strictly by treasury policies, borrowings Other linked material issues:
adversely affect our cash flow and financial taking into consideration current and future outlook of the and foreign • Network quality and coverage
performance. The Group has borrowings in relevant economies and foreign exchange markets with the currency • Digital inclusion
foreign currencies and are cognisant of our ultimate objective of preserving the Group’s profitability and borrowings
foreign exchange and interest rates exposures sustainability

• Risk Owner: Treasury Management Centre

People People are one of the key pillars of success Medium • Actively seek people who are capable and motivated to Turnover rate • Fair employment and welfare
for the Group as it underpins our ability to level, live the Group’s values, and having in place robust talent of talents and • Talent development
implement our strategy and deliver superior unchanged development programmes, attractive performance-based key influencers
services to our customers since 2017 rewards, and providing a safe and healthy work environment

• Risk Owner: Talent Management Team

Operational As a result of our reliance on third party
vendors in many aspects of our business,
their performance will have an impact on our
operations. As the industry is dominated by
a handful of vendors, loss of supply due to
a key vendor suffering business failure may
significantly affect our core business and
operations
The Group’s operations and assets span across
wide geographical locations and are subject
to risks of technical failures, partner failures,
human errors, willful acts and natural disasters
Medium • Axiata Procurement Centre’s key role is to manage these Disruption • Network quality and coverage
level, risks, monitor the performance of vendors and develop new to service • Sustainable supply chain
unchanged relationships to reduce dependencies availability • Customer service
since 2017 • Group Enterprise Risk Management continuously addresses
issues such as network congestion, dropped calls and Other linked material issues:
upgrades to network coverage to ensure better quality • Business ethics and
network and service delivery. Operating procedures with compliance
appropriate incident escalation procedures and adequate • Supply chain management
disaster recovery plans are in place at each OpCo to ensure • Digitisation and modernisation
seamless business continuity, as well as a global insurance • Climate action and
programme to mitigate business losses environmental management
• Risk Owner: Group Enterprise Risk Management

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 27
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 28

Integ rated Annua l Repor t 2018

Risks and Materiality

Risk Level
Mitigating Actions and Key Risk Link to
Risk Context and
Opportunities Arising Indicators Material Issues
Movement
Technology Constantly striving to be at the forefront of Medium • To remain relevant, it is imperative that we constantly review ROIC < WACC • Digital inclusion
technology and innovation in all our operating level, and refresh our technology, and yet maintain financial • Digitisation and modernisation
markets unchanged prudence. Our capital expenditure intensity remains high as a • Network quality and coverage
since 2017 result of the need to constantly invest in technology

• Risk Owner: Group Finance, Group Technology

Governance The Group is driven by our key values of UI.EP Low level, • The Axiata Code of Conduct sets out rules and guidelines Deviation from • Business ethics and
and to maintain high ethical standards and good unchanged on how personnel acting for or on behalf of the Group are Group’s set compliance
Integrity corporate governance, which we believe to be since 2017 expected to conduct business standards and
a key success factor when conducting business governance Other linked material issues:
in a global, highly competitive, regulated and • Risk Owner: Group Human Resource, Group Company framework • Supply chain management
changing market Secretary • Climate action and
environmental management
• Community impact/
development

Cyber Axiata is cognisant of the sensitivity of our High level, • Established the Axiata Privacy Council in 2018 to set the The Group’s • Privacy and data protection
and Data customers’ information, which includes their unchanged Privacy and Data Protection baseline expectations in all OpCos cyber security • Customer service
Privacy personal data, records of communications since 2017 • Defined an aggressive three-year cyber security strategy - maturity as • Business ethics and
information, Internet behaviours and locations, Digital Trust 2020 - to improve our processes, technology and measured compliance
as well as digital applications. We recognise people by 2020 using the NIST
the importance of having effective and • Adopted the National Institute of Standards and Technology Cybersecurity
meaningful privacy protection in place when (NIST) framework and targeting improvement to our ability to Framework
we collect, use and share personal data. We effectively detect and respond to incidents
aim to instill digital trust and confidence in
our customers through robust Privacy and • Risk Owner: Group Cyber Security Steering Committee
Information Security policies, frameworks
and management. Our vendors and business
partners too must adhere to a high standard
of data protection and compliance with the
Axiata Supplier Code of Conduct principles
Digital As the telco industry continues to digitise, Medium • Given the uncertainties and inconsistencies in legal and Deviation from • Privacy and data protection
relevant laws and regulations may not have level, regulatory requirements, it is important for the Group to keep agreed project • Customer service
caught up with the new lines of businesses unchanged pace with policy initiatives at national and international levels, timeline • Business ethics and
in the digital economy. Local governments since 2017 and expedite the implementation of action plans to ensure compliance
within the Group’s footprint are looking to compliance, as well as strengthening cyber security measures
impose OTT regulations requiring OTT players’ to safeguard data security and integrity Other linked material issues:
compliance to create a level playing field for • Digitisation and modernisation
telcos. However, as the Group embraces Digital • Risk Owner: Group Executive Vice President
Businesses within our Triple Core Strategy, we
will be affected by these new regulations as
well
 Integ rated Annua l Repor t 2018

Eight Needle-Moving Strategic Initiatives

Based on the Axiata 3.0 blueprint, we have identified Eight Needle-Moving Strategic Initiatives Performance Indicators (KPIs) to ensure they remain on track. Our Eight Needle-Moving Strategic
which form the measures and actions we are undertaking operationally to execute the Triple Core Initiatives are mapped against our overarching 4P Goals of Performance, People, Partnership, and
Strategy. All our strategic initiatives are aligned Group-wide, with our OpCos having clear Key Planet and Society.

Link to
Initiatives Our Key Progress in 2018 Score Targets by 2022 4P Goals

1 Operational • Cost optimisation programme delivered RM1.5 billion savings • Four OpCos performed best in their markets for EBITDA growth Top Performer in all
Performance and • All OpCos performed best in their markets for revenue growth • Two OpCos performed best in their markets for profit growth Markets in all Key
Cost Optimisation Metrics

2 New Growth • Refined Digital Telco focus in the Home/Convergence segments with a • Launched home broadband in four OpCos - Celcom, XL, Dialog and Triple Core: Digital Telco
Areas fixed wireless led strategy Smart + Digital Businesses
• Built a strong sales funnel for actualisation of Enterprise Businesses in • Digital businesses delivered the strongest operational performance + Infrastructure =
2019 to-date and established path to profitability Collaboration/Group
Synergy

3 Functional • Using Robotics Process Automation and AI to improve our customer • All OpCos improved in digitising and modernising the core, with Digitised and
Superiority and experience responsiveness, as well as Analytics and Contextual a blended average of approximately 50%1 from a 2017 baseline Modernised functions
Digitisation Marketing to better serve them measurement. One OpCo measured on par with the Emerging Market
• Simplified our Internal Processes and modernised IT and Network Systems Top Quartile Average
• Digitised backend processes to provide significantly improved and
paperless customer onboarding, at less than one minute, via e-Know-
Your-Customer

4 Distinct • All OpCos have now established their respective value discipline and • edotco partnered with Aerodyne Group, a leading Unmanned Aerial Value Discipline with
Competitive are tracking well in their chosen focus of either Customer Intimacy, Systems (UAS) solutions provider, to implement innovative drone Clear and Distinct
Differentiation Product Innovation or Price Leadership technology in its business operations Customer Proposition
and Clear New
Business Model

5 Industry Rationalised non-core portfolio in line with Triple Core Strategy as follows: • Disposed of entire non-strategic stake in M1 for approximately RM1.65 Sustainable Market
Restructuring and • Deconsolidated Idea investment through reclassification as a simple billion and estimated gain of RM126.5 million (completed in February Structure
Rationalisation investment from associate 2019)

6 Optimum • Smart’s strategic partner, Mitsui Co., Ltd. (Mitsui), exercised its call • ADS’ non-strategic digital venture assets were carved-out to an Optimum Capital
Portfolio option of 10% on Smart at USD92.4 million independent Singapore-based fund (completed in February 2019) Allocation for Growth
• ada secured USD20 million funds from new strategic partner • Axiata Digital Services (ADS) obtained a strategic minority and Dividend
Sumitomo Corporation investment from Mitsui (completed in April 2019)

7 Sustainability • Enhanced and strengthened cyber security and data privacy through Poultry Farming to assist entrepreneurs and rural communities, and Exemplary Long-
and Stakeholder the following measures: Social Reseller App to help our customers generate income term Corporate
Management - Established Group Cyber Security Steering Committee and Group • Digital venture funds providing investment to new startups in Citizen, Holistic Focus,
(incorporating Security Operations Centre Malaysia, Sri Lanka and Cambodia, namely Axiata Digital Innovation Regulatory Fairness
Regulatory, - Implemented three-year cyber security strategy Group-wide – Fund, Dialog Axiata Digital Innovation Fund and Smart Axiata Digital
Digital Privacy Digital Trust 2020 Innovation Fund
and Trust, and • Devised innovative solutions to bridge the digital divide, including • Launched Axiata Young Talent Programme in Cambodia to identify
Cyber Security) new digital products beyond pure connectivity such as IoT solutions and nurture future leaders with a digital mindset
in Connected Weather Systems, Connected Agriculture and Smart • edotco’s life cycle assessment of its leaner tower design found that
it exceeded its 40% carbon reduction target

8 Organisational Progressed with our ambition to empower a Modern, Agile and Digital • Launched the Learning, Engagement and Accelerating Modern, Agile and
and Cultural (M.A.D.) workforce through the following initiatives: Performance (LEAP) programme Digital (M.A.D.)
Changes • Two OpCos have started to implement Agile methodology • New performance management system “IGNITE” to boost Organisation
• Launched Knowledge Sharing Platform to enable and empower performance and development
our employees to contribute and share ideas across the Group

Legend: Achieved targets or on track Progressing on track with some near-term risks At risk of falling behind target Off Track
Note:
1
As assessed and validated by an independent third party in 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 29
The Value
We Create
 Integ rated Annua l Repor t 2018

Long-Term Group Value Creation Model

Axiata requires input from our six capitals to produce output and create outcomes and value in interconnectivity of our six capitals, this year we have enhanced our reporting on the activities
the short, medium and long-term for our stakeholders. and outcomes of our value creation efforts, by focusing on key activities generating outcomes
At the same time, our Group-wide efforts are contributing to advancing some of United aligned with achieving our ambition of becoming a New Generation Digital Champion by 2022.
Nations Sustainable Development Goals (UN SDGs). Due to the nature of the trade-offs and

INPUT VALUE CREATION PROCESS OUTCOMES AND VALUE CREATED

Business Capital* Activities Positive Output UN SDGs
Vision, Purpose & Values 1. Delivering Long-Term Value as a Regional and
1 Triple Core Strategy Global Player
• Maximising shareholder value
FINANCIAL • Sustained long-term business growth and
CAPITAL
profitability

4P Goals: Performance, Partnership, People and Planet & Society

Differentiated 2. Building a Modern, Agile and Digital Asian
2 connectivity services Talent Factory
Seamless connection • Talent development platform geared towards
HUMAN being a Modern, Agile and Digital (M.A.D.) Asian
CAPITAL Talent Factory
Digital Telco • Attract and retain talented employees
• Diverse workforce, with multiple opportunities
to advance their career
3
3. Becoming a Trusted and Reliable Digital

Risk & Opportunities

Eight Needle-Moving
INTELLECTUAL Comprehensive digital Partner

Strategic Initiatives
CAPITAL platforms for businesses • Providing amazing customer experience across
Governance

Data-driven digital our footprint

advertising
4 Digital
Secure digital financial
services
SOCIAL & Businesses Enterprise solutions/IoT
RELATIONSHIP
CAPITAL
Reliable network
5 availability
Fibre connectivity
MANUFACTURED
CAPITAL Sustainable network
tower solutions
End-to-end tower
Infrastructure management services
• Establish strong brand equity and trust
• Digital platforms to cater to customer needs for
innovative digital products and services
4. Supporting Governments and Communities in
Our Markets
• Contributing to the socioeconomic development
of the countries we operate in through national
contributions and social responsibility initiatives
5. Enabling Digitally-Connected Societies
• Increasing population coverage and connecting
underserved areas
• Aiding digital and financial inclusion

6
6. Minimising Environmental Impact
NATURAL Adverse Output • Focused carbon reduction strategy
CAPITAL • Optimising energy consumption through design
By-products: GHG emissions innovations and renewable energy sources
Operating Environment
Note:
* Refer to next page for breakdown of our six capitals and inputs

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 31
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 32

Integ rated Annua l Repor t 2018

Our Six Capitals

1 Financial Capital Input

• Market capitalisation of RM35.6 billion in
4 Social & Relationship
Capital
Input
• 2018 Brand Equity score
2018 - No.1 in Sri Lanka and Cambodia
Capital providers supply us Trusted relationships with - No.2 in Indonesia,Bangladesh and Nepal
• Gross debt/EBITDA ratio of 2.3x in 2018
with the necessary funding customers, communities, - No.3 in Malaysia
• Debt Equity Ratio of 1.1 1 in 2018
for our business, in addition governments and regulators, • Industry and community partnerships
• Credit ratings of Baa2 on Moody’s and
to cash generated from suppliers, trade unions, industry • Customer base of approximately
bbb+ on S&P in 2018 bodies, among others, are
operations and investment. 150 million3 subscribers in 2018
• Operating expenses of RM15.6 billion2 in key towards ensuring that we
2018 maintain strong relationships of
trust with our stakeholders.

2 Human Capital Input

• More than 12,0003 employees from
5 Manufactured Capital Input
• >29,800 towers owned and managed by
edotco
38 nationalities across Asia • Group-wide BTS Infrastructure4
Our skilled workforce is Our network infrastructures, data
a pivotal part of Axiata’s • Male: Female employee ratio of 2.4:1 centres and software applications • Group capex of RM6.1 billion
business model. Our • RM178 million spent on talent are an important source of • Group Plant, Property and Equipment (PPE)
engaged, diverse, and development since 2009 competitive differentiation. value of RM27.3 billion
innovation-driven employees Our Manufactured Capital also • Telecommunication network equipment
• High percentage of engaged employees
(net book value) of RM22.7 billion
contribute to the success of includes the office buildings
• edotco tower capex of RM753 million
our business. housing our workforce. • edotco PPE value of RM2.2 billion
• Global digital platform business, Apigate

3 Intellectual Capital Input

• Mobile licenses and spectrum allocations 6 Natural Capital Input
• Direct energy consumption of 1,210,358 GJ
throughout our operating markets • Indirect energy consumption of
Our strong brand equity and • Investment in digitisation and We consume energy in our 5,705,809 GJ
trust, culture, partnerships, modernisation initiatives operations, and use land to • 0.5% of energy consumed coming from
know-how as well as our • Cyber security, data privacy and house our towers and other renewable sources
procedures and processes infrastructure.
information security initiatives • Energy intensity of 290 GJ/RM million in
differentiate us in the
marketplace. 2018

Trade-off • The investments we make in Social and Relationship Capital reduces our Financial Capital
• The expansion of our networks increases our base of Manufactured Capital, while reducing in the short-term. However, in the long-term, our efforts to close the digital divide,
our Financial Capital in the short-term. However, in the long-term, our investments expand and contribute to the national development of our markets of operation as well as the
our business’ capacities, and therefore grows our Financial Capital socioeconomic development of our footprint communities, builds upon our Social and
• Our Intellectual Capital investments reduces our Financial Capital in the short-term. However, Relationship, Human, Intellectual and Financial Capitals
it expands the value of our Human, Financial, and Social and Relationship Capital in the long- • Our base of Manufactured Capital negatively impacts upon our Natural Capital. However,
term through our carbon footprint reduction initiatives, as well as concerted efforts to build green
infrastructure solutions, we are able to mitigate our impact on our Natural Capital
Notes:
1
Total borrowings over total shareholders’ equity
2
Axiata’s operating expenses represent the difference between statutory post-MFRS 15 & 9 revenue of RM23.9 billion and EBITDA of RM8.3 billion
3
Excluding Idea and M1
4
For details of BTS at OpCos, please refer to the Entities Across Asia section in this IAR
 Integ rated Annua l Repor t 2018

1. Delivering Long-Term Value as a Regional and Global Player

Related Key Capitals Outcomes and Value Created

Maximising shareholder value
Sustained long-term business growth and profitability

Activities and Processes Performance Indicators

to Create Value
Operating Revenue EBITDA Normalised PATAMI
• Conducted a Group-wide cost
optimisation programme, with a 2016 2017 2018 2016 2017 2018 2016 2017 2018
goal to deliver RM5 billion across
savings and avoidance by 2021
• Strengthened balance sheet via RM21.6 RM24.4 RM23.9 RM8.0 RM9.2 RM8.3 RM1.4 RM1.2 RM1.0
management of US Dollar debt billion billion billion billion billion billion
billion billion billion
• Optimised resource allocation
towards new growth and expansion
areas in line with the Triple Core
Strategy
• Apigate partnered with major telco Dividend per Share/Dividend Payout Ratio Cash Reserves
groups such as Zain, Etilasalat, Tencent
and Gameloft by leverging on its future- 8.0 sen 50% 2016
RM5.3 RM6.8 RM5.1
ready APIs on one seamless platform 8.5 sen 64% 2017 billion billion billion
which allows local businesses to scale 9.5 sen 85% 2018
globally for SMS, Operator and e-wallet 2016 2017 2018
Billing
• Reclassified Idea investment to simple Delivered RM2.8 billion in cost optimisation Gross Debt to EBITDA Ratio Credit Ratings
investment from associate to remove drag within the first two years of the programme
on future profitability
• M1 divestment resulted in total
cash proceeds of approximately Moody’s - Baa2
2016 2.78x 2016
RM1.65 billion and estimated gain of 26% S&P - bbb+
RM126.5 million in 2019 RM1.3 billion

RM2.8 Moody’s - Baa2

RM5.0 2017 2.08x 2017
S&P - bbb+
billion billion
Link to 4P Goals 2017

30% Moody’s - Baa2

2018 RM1.5 billion 2018 2.29x 2018
S&P - bbb+

2019-2021

IAR
More details on our financial performance can be found in ‘Our Performance’ section of this IAR, under Financial Highlights
GA
FS Our Audited Financial Statements are available in our GAFS 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 33
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 34

Integ rated Annua l Repor t 2018

2. Building a Modern, Agile and Digital Asian Talent Factory

Related Key Capitals Outcomes and Value Created
Talent development platform geared towards being a Modern, Agile and Digital (M.A.D.) Asian Talent Factory
Attract and retain talented employees
Diverse workforce, with multiple opportunities to advance their career

Activities and Processes Performance Indicators

to Create Value
Building the M.A.D. Culture Talent at Axiata
• Introduced initiatives to align
2017 2018
organisational culture to M.A.D. Axiata Academy
uses an intelligent
8 thematic awards AAC trained 170 data
values: under LEAP scientists and data
- Piloted Axiata Academy in learning technology Top Management 145 174
encapsulating the engineers in 2018, and
Celcom platform to curate M.A.D. organisation targets to increase to
learning modules for Middle Management 660 513
- Launched Group-wide Learning, ethos and IR 4.0 300 people in 2019
Engagement, and Accelerating employees
Performance (LEAP) Awards for
employees as ongoing motivators Employee utilisation of Lynda.com in 2018: External : Internal Hiring Ratio
for accelerated adoption of digital • Top courses included digital privacy, cyber security and big data
initiatives techniques and concepts
- Provided our employees access to • 100% activation of licenses were given to employees
online learning platform Lynda.com, • 35% growth in active users over the first 6 months
to empower them with their lifelong • >64,600 courses completed in 2018 From 78:22 From 78:22
learning and professional development to to
40:60 17:83
efforts To embed the digital mindset across the organisation:
- Developed a Group-wide Knowledge • “Synapse” allows our employees to contribute and share ideas across the
Sharing Platform, “Synapse”, to easily Group, and accelerates best practice transfers
share learnings and best practices across 2017 2018
OpCos
- Axiata Analytics Center (AAC)
Leadership at Axiata Group Employee Engagement Survey Result:
provided technical analytics training
for data scientists and data engineers
Group-wide
7 out of 9 CEO
• Continued investment in our • 83% were filled 86% SEI2 87% SEI2 88% SEI2
employees’ career development positions filled by
internally
internal talents 87% UI.EP 90% UI.EP 91% UI.EP
through programmes like the
Group Accelerated Development Out of 65 80% Ethics 84% Ethics 84% Ethics
Programme and OpCo Accelerated leadership 72% High 74% High 75% High
positions in • 54% are locals
Development Programme 20181 Gender Diversity in Performance Performance Performance
• Robust compensation philosophy • 22% were Leadership Culture Culture Culture
was practised to attract and footprint talents
retain quality talent • 24% were 88% Male 83% Male 2016 2017 2018
external talents 12% Female 17% Female
Link to 4P Goals Creating a highly engaged and conducive
workplace for employees
2017 2018

Notes:
SN
More details on our efforts to develop and support professional 1
Local: Locals working in their respective OpCo country. Footprint: Non-locals from Axiata’s footprint countries. External: Non-locals from outside Axiata’s footprint countries
CR growth are discussed in the ”Nurturing People” chapter of our SNCR 2
SEI refers to Sustainable Engagement Index
 Integ rated Annua l Repor t 2018

3. B ecoming a Trusted and Reliable Digital Partner

Related Key Capitals Outcomes and Value Created

Providing amazing customer experience across our footprint
Establish strong brand equity and trust
Digital platforms to cater to customer needs for innovative digital products and services

Activities and Processes Performance Indicators

to Create Value Total Number of Brand Equity Score Social Reputation Score
Mobile Customers 2018 2018
• Executed Group-wide Digital
Transformation Strategy 2018
• Developed digital products and
services to enhance customer 2017 • No.1 in Sri Lanka • No.1 in Malaysia,
~ 150 Strong to Strong brand
experiences million1 and Cambodia Indonesia, Nepal
dominant on the presence on
• Conducted Group-wide cyber 2016 and Bangladesh
~ 350 Brand Equity • No.2 in Indonesia, social media in
security enhancements
million Index in all mobile Bangladesh and • Strong No.2 in all mobile
- Implemented three-year “Digital
~ 320 markets Nepal Sri Lanka and markets
Trust 2020” (DT2020) cyber
security strategy million • No.3 in Malaysia Cambodia
- Established Group Cyber Security
Steering Committee
- Adopted internationally recognised Net Promoter Score in Expanded OpCos digital portfolio with digital Enhanced Data Privacy and Cyber Security
security standards, namely the National Mobile Markets products beyond pure connectivity via:
Institute of Standards and Technology 2018 - Strengthened oversight and provided
(NIST) and Group-wide Minimum Baseline assurance to the Board Risk Management
IoT solutions such as Enhanced
Security Standards (MBSS) No.1 in No.2 in Committee on cyber security maturity
Connected Weather digital customer
- Implemented Group Security Operations 5 markets 1 market Systems, Connected touchpoints through - Consolidated all OpCo security functions and
Centre (GSOC) - - Agriculture and Smart Robotics Process provided a common direction to improve and
- Signed MoU with Malaysia Digital Malaysia, Indonesia Poultry Farming to help Automation and reduce cyber risk
Economy Corporation to promote entrepreneurs and rural Artificial Intelligence
Sri Lanka, - Standardised approach to implement cyber
sharing of best practices, cyber customers with their to on-board our
Bangladesh, security across all OpCos to improve maturity
threat scenarios and support talent businesses customers faster
Cambodia and level
development
- Trained cross-functional Privacy and Nepal - Implemented GSOC to provide early warning
Information Security Team on threats and cyber attacks
Social Reseller Analytics and
- Conducted Threat and Vulnerability App to assist - Established stronger links and collaborations
Digitising core functions using a Contextual
Management Programme: customers to with local regulators and stakeholders, as well
best practice framework approach Marketing
- Performed “Red Teaming” generate income as global industry peers and leaders to share
is used to
Group-wide threat intelligence
provide our
- Implemented “Bug Bounty” • Average of 50% improvement customers - Implemented cyber and privacy
initiative amongst OpCos in 20182 with intuitive programmes to ensure our staff
• 1 OpCo measured on par with Experimenting with Blockchain solutions at and key third parties are cyber
Link to 4P Goals Emerging Market Top Quartile technology to ensure the highest savvy
Average2 irrefutable authentication of levels of data - Boosted our cyber resilience via
customer identity privacy continuous security assessments
to identify and improve our cyber risk profile

IAR More details on our efforts to become a New Generation Digital Champion are discussed in the “Our Business” and “Our Strategy” chapters in this IAR Notes:
1
Approximate number of customers excluding Idea and M1
GA
FS More information on our Data Privacy and Cyber Security measures can be found in our GAFS 2018 2
Based on Digital Telco Index, as assessed by independent third party in 2018, against a 2017 baseline

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 35
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 36

Integ rated Annua l Repor t 2018

4. Supporting Governments and Communities in Our Markets

Related Key Capitals Outcomes and Value Created
Contributing to the socioeconomic development of the countries we operate in through national contributions and social responsibility
initiatives

Activities and Processes Performance Indicators

to Create Value
Total National Contribution1 In 2018, Tower to Community impacted Number of Jobs Supported
• Focused on the development Across the Region2
of digital services to meet 1.2
the socioeconomic needs of 2016 2017 2018 1,020 28 million
communities families schools 1.0
• Partnership with the GSMA in the million 0.9
Humanitarian Connectivity Charter million
and the Connected Women Initiative USD USD USD
• Actively engaged with national 13.8 15.9 13.9
regulatory authorities and policy billion billion billion 30 1
makers on key regulatory topics, mosques hospital
and encouraged the development of
national-level policies and regulations 2016 2017 2018
based on global best practice
• edotco rolled out Tower to Community
Connected Women Initiative (CWI) Humanitarian Connectivity Charter
project providing electricity to
underserved communities in Bangladesh 2016 Initiated a Group-wide Disaster Response Plan
and Myanmar Dialog Robi
• As part of running operations in our 2017 Over 8 million SMS sent by Dialog and Ncell in
OpCo markets, Axiata continued to 2016 Dialog and Robi the first GSMA members to commit to CWI projects partnership with local authorities to evacuate danger
be a responsible corporate citizen, areas
and contributed taxes to all national 2017 • 49 Regional Women Development • 17,755 women in 64 districts
Governments of the countries where we Officers from the Ministry of and villages trained in digital 2018 • XL donated digital services worth over USD1.8
Women and Child Affairs trained as literacy and entrepreneurship million to connect customers after three disasters in
operate Indonesia
• Our investment in the form of trainers • 400,000 monthly users on
• Celcom signed a letter of co-operation with National
capital expenditure and operating • 675 women in villages empowered ‘Maya Apa Plus’, an on demand Disaster Management Agency to support sending
expenditure in our markets of to use digital services related to information service on health, SMS alerts in disaster events
operation resulted in the Group education, health, entrepreneurship psychosocial and legal issues • Ncell extended partnership with Department of
and Internet safety Hydrology and Meteorology for another five years
contributing towards job creation,
and supporting the national • Launched Yeheli/Thozhi messaging • 25,343 women in 64 districts
2018
economy of the countries in our platform for women seeking advice and villages trained in digital
regional footprint Total Tax 2016 2017 2018
on social and personal issues literacy and entrepreneurship Contributions2
• 450,000 monthly users
accessed ‘Maya Apa Plus’ USD USD USD
Link to 4P Goals • Partnered with Cignifi and Bank 1.19 1.26 1.40
Asia to increase digital financial billion billion billion
inclusion among women

Notes:
1
Total national contributions and jobs supported are for Celcom, XL, Smart, Dialog, Robi, Ncell, Idea and M1 within their respective markets of operation
2
Total tax contributions for Celcom, XL, Smart, Dialog, Robi and Ncell to their respective Governments
SN
CR Information on our GSMA partnerships can be found in the “Beyond Short-Term Profits” chapter of the SNCR
 Integ rated Annua l Repor t 2018

5. E nabling Digitally-Connected Societies

Related Key Capitals Outcomes and Value Created

Increasing population coverage and connecting underserved areas
Aiding digital and financial inclusion

Activities and Processes Performance Indicators

to Create Value
ADIF Funding for Digital Startups Percentage of Base Stations in Rural Areas Micro-financing
• Invested in building base
stations in rural areas to as part 2016 2017 2018 2016 2017 2018 Indonesia:
of efforts being undertaken to Supply Chain Credit for
narrow the digital divide and boost Boost merchants ranging
connectivity
• Provided digital services and RM30 RM43.9 RM48.9 44% 44% 46% from

million million million IDR500,000 -

solutions for fishermen and farmers
• Axiata Digital Innovation Fund (ADIF), IDR5.0 million
Smart Axiata Digital Innovation
Fund (SADIF) and Dialog Axiata Govi Mithuru - Sri Lanka
Digital Innovation Fund (DADIF) were SADIF Funding for DADIF Funding for • Over 500,000 subscribers for voice message
Malaysia:
established to support and drive Digital Startups1 Digital Startups1 services to farmers to help improve crop cultivation
Working Capital Loan for
the growth of the digital ecosystem 2018 2018
Laut Nusantara - Indonesia Boost merchants ranging
in Malaysia, Cambodia and Sri Lanka
• Subsidised 1,200 smartphones for fishermen to from
respectively, by providing venture capital USD SLR
access maritime digital solutions through the Laut RM500 -
for digital startups 1.2 219 Nusantara app featuring information on waterways,
• Provided digital inclusion initiatives namely million million navigation rules, coastal information and tagging of RM20,000
e-wallet services such as Boost in Malaysia, locations to optimise potential catch
eZ Cash in Sri Lanka, and SmartLuy in
Cambodia
• Axiata Digital Capital launched micro-
financing products in Malaysia and
Total Registered
Indonesia to support micro-entrepreneurs Registered Users Registered Users Registered Users Customers and Policies
grow their businesses
• BIMA in Cambodia, Bangladesh and Sri 3.5 Bangladesh
Lanka offered mobile-micro insurance million 2017 323,281
3.4
in life insurance, hospitalisation and 2018 491,665
million 103,408
personal accident 3.0
million Sri Lanka
53,982 2017 2,638,796
Link to 4P Goals 645,414 2

2018 2,657,778

Cambodia
2017 900,000
2018 677,498
2017 2018 2017 2018 2017 2018

Notes:
1
SADIF and DADIF were established in 2017 and 2018 respectively SN
CR
2
The 2.2 million registered users reported in IAR 2017 was as at 31 March 2018 More details on our efforts to digitally connect societies can be found in the “Beyond Short-Term Profits” chapter of our SNCR

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 37
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 38

Integ rated Annua l Repor t 2018

6. M inimising Environmental Impact

Related Key Capitals Outcomes and Value Created
Focused carbon reduction strategy
Optimising energy consumption through design innovations and renewable energy sources

Activities and Processes Performance Indicators

to Create Value
Group-wide Total Energy Consumption Group-wide GHG Emissions1 Energy from Renewable Sites2 Group-wide
• Undertook various strategies
amongst OpCos Group-wide to Scope 1 Scope 2
reduce greenhouse gas (GHG) Solar Wind
emissions, including integrating
network equipment at base stations, Direct Indirect
replacing old air-conditioners, 1.2 million 5.7 million
and adjusting air-conditioning and GJ GJ 83,130 1,028,022
heating systems tCO2e tCO2e
36,280 23
• edotco, as the infrastructure company GJ GJ
operating most of the networks in our 2018 2018 2018
regional operations, is one of the primary Direct Indirect
2017: 0.8 million GJ 2017: 4.5 million GJ 2017: 54,701 tCO2e 2017: 868,581 tCO2e Renewable Energy: 0.5%
contributors to GHG emissions. Having
2016: 0.6 million GJ 2016: 4.3 million GJ 2016: 65,756 tCO2e 2016: 919,354 tCO2e
committed to reduce its carbon footprint
by 40% in 2018 from a 2013 baseline,
edotco surpassed the target to achieve a Carbon Footprint Reduction by edotco
44% reduction one year ahead of plan
• In 2018, edotco conducted the 25% - 70% reduction in carbon footprint with use of 41% - 100% reduction in carbon footprint with site
following activities towards managing its edotco's green tower designs optimisation and renewable energy use
environmental footprint responsibly:
- Total of 1,112 green sites utilising renewable
Structure Design Solar Energy
energy or alternative material
- Added an additional 317 solar sites, raising 25% 100%
the total to 982 under its management 41m 4-legged 41m 3-legged reduction 1kWh generated 1kWh generated reduction
GFRT vs GFT via gensets vs via solar panel
- Deployed 92 solar air conditioner sites in
Malaysia
- Pioneered the first hybrid solarwind
turbine energy solution in Myanmar
Site Layout Optimisation Wind Energy
- Deployed the first-ever smart lamp 41% 100%
pole in Sri Lanka, and have deployed
22 to date
- Currently has four variations of
45m 3-legged
(Pre Opti) vs
45m 3-legged
(Post Opti)
reduction 1kWh generated
via gensets vs
1kWh generated
via wind
reduction
44%
reduction in
bamboo towers since the first
deployment in Bangladesh in 2017 Carbon Footprint
- Conducting research in Malaysia, from Baseline3
Carbon Fibre Structures Site Electrification
Cambodia and Myanmar to utilise 20% 41%
local bamboo for towers 30m Steel 30m Carbon reduction Off-grid vs Grid site reduction
lampole site vs fibre site 2018

Link to 4P Goals Bamboo Structures Free Cooling System

70% 78%
6m Steel 6m bamboo reduction Free cooling reduction
structure vs structure Air-conditioner vs system

Notes: 3
edotco embarked on its carbon footprint reduction programme in 2013 with the goal of reducing its footprint by 40% by 2018. Three studies were conducted to establish
1
tCO2e refers to tonnes carbon dioxide equivalent and monitor data; the first in 2013 to establish baseline, the second in 2016 to monitor progress at the midway point, and the final one in 2018 to measure outcomes of the
2
Energy used by Celcom, XL, Smart, Dialog, Robi, Ncell and edotco programme. The results are based on a Life Cycle Assessment study by SIRIM in four countries of edotco’s operations

SN
IAR CR More details on our environmental sustainability efforts can be found in the “Strategy” chapter in this IAR and in the “Planet and Society” chapter of the SNCR
 Our
Performance
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 40

Integ rated Annua l Repor t 2018

Financial Review
Five-Year Group Financial Highlights

Operating Revenue EBITDA PAT Normalised PATAMI ROIC Customers

(RM Billion) (RM Billion) (RM Billion) (RM Billion) (%) (Million)

-2% -10% -100% -16% -3.4pp -57%

23.9
18.7

19.9

21.6

24.4

-5.2

149
266

275

320

348
8.3

1.0

1.3
7.0

7.3

8.0

9.2

2.4

2.6

0.7

1.2

2.3

2.1

1.4

1.2

9.0

7.7

4.5

4.7
-33%

1.9
1.3

+0.9pp

Idea
5.6%

M1
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Note 9 Note 1 Note 8, 9 Note 7 Note 6 Note 5 Note 2 Note 3 Note 4 Note 4

Note 1 - 2018 normalised PAT of RM1.3 billion excludes Idea related losses (RM3,862.5 million), write- Note 5 - 2017 normalised PATAMI excludes gain on disposal of towers (RM91.3 million), purchase
off, impairment and accelerated depreciation on property, plant and equipment (gross: RM1,816.6 price allocations amortisation (RM159.2 million), loss on asset held-for-sale (RM161.4 million),
million), foreign exchange loss (RM501.5 million), gain on disposal of towers (RM121.3 million) and severance payment (RM62.8 million), loss on disposal of joint venture (RM40.1 million) and foreign
purchase price allocations amortisation (RM295.4 million). exchange gain (RM165.6 million).

Note 2 - 2018 normalised PATAMI excludes Idea related losses (RM3,862.5 million), write-off,
impairment and accelerated depreciation on property, plant and equipment (gross: RM1,816.6
million), foreign exchange loss (RM481.4 million), gain on disposal of towers (RM80.5 million) and
purchase price allocations amortisation (RM236.3 million).
Note 3 - FY2018 reported ROIC is 1.3%. At pre-MFRS 15 and 9 and at constant currency, exclude all
Idea related losses, assets write-off and restructuring costs, FY2018 ROIC would be 5.6%.
Note 4 - FY2018 customers exclude Idea and M1. For FY2017, customers of Idea and M1 are 203
million and 2 million respectively.
Note 6 - 2016 normalised PATAMI excludes gain on disposal of towers (RM339.6 million), accelerated
depreciation (RM303.8 million), purchase price allocations amortisation (RM105.5 million), merger
one-off adjustments (RM20.2 million) and foreign exchange loss (RM824.1 million).
Note 7 - 2015 normalised PATAMI excludes gain on disposal of towers (RM399.8 million), one-off tax
impact (RM49.0 million) and foreign exchange gain (RM132.3 million).
Note 8 - 2014 normalised PATAMI excludes gain on divestment of associate company (RM116.7
million), gain on disposal of towers (RM48.2 million) and foreign exchange loss (RM55.5 million).
Note 9 - 2014 are based on restated financials as reported in 2015.
 Integ rated Annua l Repor t 2018

Financial Review

Summary Breakdown of Operating Revenue and EBITDA

Operating Revenue EBITDA

Others
Ncell Others Ncell

8.8% 3.2% 2.2%

Smart
15.6% Celcom
Celcom

4.9%

Smart
2.3% 3.9%
Robi 9.8%
6.5% 16.9%
13.7% 22.9%
4.9%
30.7%
27.0% 25.1%

14.9% 6.4%

2017 2017
Robi 7.5%

9.5%
10.9% 10.3%

30.2%
29.9%
11.4%

Dialog
Dialog
13.0%
30.3%

XL
27.3% XL

2018 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 41
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 42

Integ rated Annua l Repor t 2018

Financial Review

Summary Breakdown of Total Assests and Total Liabilities & Equity

Total Assets Total Liabilities & Equity

Trade and other Associates/Joint

receivables ventures

Trade and
0.5% other payables
Deposits,
cash and bank 9.1%
balances
24.2%
Property, plant
and equipment
7.9% Borrowings
42.7%
30.0%

Other assets 11.5%

20.4%
7.0% 7.2% Other liabilities

38.5% 9.5%
27.4%
9.7%

2017 8.5% 2017

1.4%

8.3%

31.7%
19.2%
16.2%

9.0%

32.8%
21.1% Non-controlling
Intangible assets interests
6.2%
Share capital

Reserves

2018 2018
 Integ rated Annua l Repor t 2018

Financial Review

Five-Year Group Financial Summary

Operational Highlights

All in RM Million unless stated otherwise FY2018 FY2017 FY20162 FY2015 FY20142 Notes:
1
Excludes foreign exchange gain/loss, gain/loss on
1. Operating Revenue 23,886 24,402 21,565 19,883 18,712 disposal of an associate & joint venture, loss on asset
held-for-sale, write-off, impairment and accelerated
2. Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) 8,334 9,230 8,013 7,284 6,999
depreciaiton on property, plant and equipment,
3. Earnings from Associates & Jointly Controlled Entities (428) (404) 30 434 339 purchase price allocations, gain on disposal of
towers and severance payment, merger one-off
4. Profit Before Tax (PBT) (4,346) 1,936 1,140 3,331 3,147 adjustments, one-off tax impact and Idea related
5. Profit After Tax (PAT) (5,247) 1,162 657 2,636 2,369 losses
2
FY2016 and FY2014 are based on restated financials
6. Profits After Tax and Minority Interests (PATAMI) (5,035) 909 504 2,554 2,365 3
FY2018 customers exclude Idea & M1
7. Normalised PATAMI1 1,010 1,205 1,418 2,071 2,256
4
EBIT less tax over average invested capital.
At pre-MFRS 15 and 9 and at constant currency,
8. Total Shareholders’ Equity 17,477 24,731 23,581 23,525 20,761 excluding all Idea related losses, assets write-off and
9. Total Assets 63,855 69,911 70,753 56,118 49,106 restructuring costs, FY2018 ROIC would be 5.6%
5
Gross debt over EBITDA
10. Total Borrowings 19,130 19,184 22,260 16,392 13,893 6
Total borrowings over total shareholders’ equity
11. Customers (million)3 149 348 320 275 266

Growth Rates YoY

1. Operating Revenue -2.1% 13.2% 8.5% 6.3% 1.9%

2. EBITDA -9.7% 15.2% 10.0% 4.1% -3.7%
3. Total Shareholders’ Equity -29.3% 4.9% 0.2% 13.3% 5.8%
4. Total Assets -8.7% -1.2% 26.1% 14.3% 12.9%
5. Total Borrowings -0.3% -13.8% 35.8% 18.0% 3.4%

Share Information

1. Per Share
Earnings (basic) – sen (55.6) 10.1 5.7 29.5 27.4
Earnings (diluted) – sen (55.4) 10.1 5.7 29.3 27.2
Net Assets – RM 1.9 2.7 2.6 2.7 2.4
2. Share Price information – RM
High 5.70 5.49 6.34 7.22 7.27
Low 3.25 4.29 4.19 5.71 6.44

Financial Ratio

1. Return on Invested Capital4 1.3% 4.7% 4.5% 7.7% 9.0%

2. Gross Debt to EBITDA5 2.3 2.1 2.8 2.3 2.0
3. Debt Equity Ratio6 1.1 0.8 0.9 0.7 0.7

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 43
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 44

Integ rated Annua l Repor t 2018

Financial Review
Consolidated Statement of Comprehensive Income Consolidated Statement of Cash Flows

Financial Year Ended Financial Year Ended

31/12/2018 31/12/2017 31/12/2018 31/12/2017

RM’000 RM’000 RM’000 RM’000

Operating Revenue 23,885,781 24,402,401 Receipt from customers 24,510,506 23,648,914

Operating costs Payments to suppliers and employees (16,222,297) (15,884,795)
- depreciation, impairment and amortisation (7,644,816) (5,986,213) Payment of finance costs (1,176,600) (1,297,431)
- foreign exchange gains/(losses) 8,389 (191,563)
Payment of income taxes (net of refunds) and zakat (1,141,763) (733,737)
- domestic interconnect and international outpayment (2,408,317) (2,700,723)
Total cash flows from operating activities 5,969,846 5,732,951
- marketing, advertising and promotion (2,147,698) (2,108,755)
- other operating costs (8,927,499) (8,455,866)
Purchase of PPE (net of proceeds from disposal) (6,613,083) (4,885,106)
- staff costs (2,068,133) (1,906,939)
- other losses - net (297,790) (57,665) Acquisition of intangible assets (540,640) (99,372)

Other (expenses)/income - net (3,057,592) 5,370 Investment in deposits maturing more than three months (970,029) 140,068
Operating (loss)/profit before finance cost (2,657,675) 3,000,047 Investment in subsidiaries (103,510) (489,236)
Finance income 221,459 241,807 Investment in associates and a joint venture (59,551) (164,199)
Finance cost excluding net foreign exchange (losses)/gains on financing Interest received 223,962 239,343
activities (1,272,385) (1,253,369) Dividends received from associates 90,187 92,587
Net foreign exchange (losses)/gains on financing activities (208,689) 352,000 Others (395) (624)
(1,481,074) (901,369) Total cash flows used in investing activities (7,973,059) (5,166,539)
Joint ventures
- share of results (net of tax) 1,678 (48,989)
Repayments of borrowings and Sukuk (net of proceeds) (257,425) (1,446,774)
Proceeds from private placements of a subsidiary (net of transaction costs) - 2,178,986
Associates
- share of results (net of tax) (26,364) (352,670) Partial disposal of subsidiaries (net of transaction costs) 367,434 1,162,440

- loss on dilution of equity interests (403,712) (2,595) Additional investment in a subsidiary by NCI 396,456 -
(Loss)/Profit before taxation (4,345,688) 1,936,231 Repayment of finance lease (208,300) (153,693)
Taxation and zakat (901,552) (773,749) Dividends paid (855,445) (494,388)
(Loss)/profit for the financial year (5,247,240) 1,162,482 Others 9,674 1,095
Total cash flows (used in)/from financing activities (547,606) 1,247,666
(Loss)/Profit for the financial year
- owners of the Company (5,034,573) 909,480 Net (decrease)/increase in cash and cash equivalents (2,550,819) 1,814,078
- non-controlling interests (212,667) 253,002 Exchange losses and restricted cash (133,091) 8,158
(5,247,240) 1,162,482 Cash and cash equivalents at the beginning of the financial year 6,471,658 4,649,422
Cash and cash equivalents at the end of the financial year 3,787,748 6,471,658
Earnings per share (sen)
Bank Overdrafts 103,300 92,824
- basic (55.6) 10.1
Deposits and others 1,180,400 248,386
- diluted (55.4) 10.1
Deposits, cash and bank balances 5,071,448 6,812,868
 Integ rated Annua l Repor t 2018

Financial Review
Consolidated Statement of Financial Position

As at As at

31/12/2018 31/12/2017 31/12/2018 31/12/2017

RM’000 RM’000 RM’000 RM’000

CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS CURRENT ASSETS

OF THE COMPANY Inventories 219,130 174,279
Share capital 13,502,368 13,407,253 Trade and other receivables 5,115,230 4,496,637
Reserves 3,974,431 11,323,883 Derivative financial instruments 238,506 53,109
Total equity attributable to owners of the Company 17,476,799 24,731,136 Financial assets at fair value through profit or loss 38 64
Non-controlling interests 5,737,907 5,773,447 Tax recoverable 54,860 41,615
Total equity 23,214,706 30,504,583 Deposits, cash and bank balances 5,071,448 6,812,868
10,699,212 11,578,572
NON-CURRENT LIABILITIES Assets classified as held-for-sale 1,602,800 223,162
Borrowings 14,646,553 14,796,319 Total current assets 12,302,012 11,801,734
Derivative financial instruments 1,698,722 1,441,161
Deferred income 363,196 270,915 LESS: CURRENT LIABILITIES
Deferred gain on sale and lease back assets 663,228 817,073 Trade and other payables 12,484,444 12,616,963
Trade and other payables 2,987,844 1,644,197 Deferred gain on sale and lease back assets 120,942 126,017
Provision for assets retirement 487,394 468,920 Borrowings 4,483,197 4,387,670
Deferred taxation 1,391,214 1,672,496 Derivative financial instruments 155,901 152,621
Total non-current liabilities 22,238,151 21,111,081 Current tax liabilities 1,157,686 754,511
45,452,857 51,615,664 18,402,170 18,037,782
Liabilities classified as held-for-sale - 257,550
NON-CURRENT ASSETS Total current liabilities 18,402,170 18,295,332
Intangible assets 20,926,703 22,176,286 Net current liabilities (6,100,158) (6,493,598)
Contract acquisition costs 108,503 - 45,452,857 51,615,664
Property, plant and equipment 27,290,458 26,909,970
Associates 266,475 7,985,974
Joint ventures 27,699 26,022
Financial assets at fair value through other comprehensive income 1,659,412 -
Available-for-sale financial assets - 62,030
Derivatives financial instruments - 143,777
Trade and other receivables 686,804 535,157
Deferred taxation 586,961 270,046
Total non-current assets 51,553,015 58,109,262

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 45
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 46

Integ rated Annua l Repor t 2018

2018 Overview of Operating Companies’ Performance

Reporting by Geographical Location1

Malaysia Indonesia Sri Lanka

(RM Billion) (IDR Trillion) (SLR Billion)

(0.03)

109.2
(0.8)

(3.3)
23.6

23.0

21.4

22.9

23.0

67.3
20.9

73.9
23.8

86.7
29.2

94.2
33.9
10.8

43.5
7.7
3.1
2.7

7.3
2.7
1.3

6.6
2.3
1.0

6.6
2.3
1.1

7.3
1.9
0.3

8.6

8.4

8.1
0.4

8.3
0.4

8.5

6.1

5.2

9.0

7.5
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Bangladesh Cambodia Nepal

(BDT Billion) (USD Million) (NPR Billion)
179.6

232.6
115.6

262.8
129.8

268.2
127.2

287.5
134.8
(3.9)

(2.8)

57.5
35.5
15.3
49.4
18.9

52.4
19.1

52.7
14.3

68.3
13.0

76.1
32.4

56.5

67.2

68.1

58.7
37.7
20.3

58.1
37.0
18.9
68.0
16.7

67.6
4.4

4.0

2.1

2014 2015 2016 2017 2018 2014 2015 2016 20172 2018 20163 2017 2018

Notes:
All financial numbers are based on audited financial figures and follows the respective country’s GAAP except for Ncell which had a different financial year end
1
Axiata’s reporting by geographical location is conducted for its OpCos: Celcom, XL, Smart, Dialog, Robi and Ncell
2
2017 figures have been restated to exclude edotco Cambodia’s results, for like to like comparison with 2018 figures
3
Annualised figure based on 8.5 months since acquisition of Ncell on 11 April 2016 Revenue EBITDA PAT

2018 Overview of Operating Companies’ Performance
Operating Companies
Celcom’s continued efforts in operational transformation yielded
solid results in 2018, outperforming all Mobile Network Operators
(MNO) peers with a service revenue growth of 1.1% Year on Year
(YoY) and a market share gain of 0.5 ppt1. It was the only MNO
to have grown both prepaid and postpaid Average Revenue
Per User (ARPU) YoY – validating the successful execution
of its strategy. Its cost optimisation initiatives delivered a
commendable trend with Quarter on Quarter (QoQ) EBITDA
growth of 6.0% and an EBITDA margin uplift of 2 ppt in the
fourth quarter of 2018, allowing Celcom to kickstart 2019 with a
healthier cost base.
In 2018, Celcom showed major progress in its network, with
LTE and LTE-A coverage now at 91% and 78% respectively. The
company also delivered significant improvement in distribution,
achieving the #1 position in Dealer Satisfaction nationwide.
Celcom continues to pride itself in its customer centricity –
ending the year with the #1 spot in Net Promoter Score in
addition to being recognised by Forbes as one of the “Top 10
Most Customer-Focused Companies In Asia”.
Following the completion of its merger with Airtel in late 2016,
Robi continues to monetise its Dual Brand Strategy by winning
both the high-value segment via the “Robi” brand and youth
segment via the “Airtel” brand. Service revenue and EBITDA
grew by 9.3% and 28.0% respectively, outperforming all other
players for both metrics. Due to exemplary integration between
the two entities and diligent execution of its cost optimisation
programme, Robi delivered a successful profit turnaround in
2018 from a loss position in 2017 after the acquisition of a loss-
making company.
On the back of its rapid 4G network roll out, Robi emerged as
the 4G market leader with nearly 7,400 4G sites by end 2018
and was recognised by Ookla’s 2018 Speedtest Award for “Best
Download Speed”. This competitive advantage contributed to
a 9.3% growth in subscribers as customers seek to experience
Robi’s superior network.
Due to its successful Dual Brand Strategy, Airtel and Robi
ended the year as the #1 and #2 brands respectively in Net
Promoter Scores.
Notes:
Growth numbers based on results in local currency in respective operating markets, excluding MFRS 9 and 15 impact in Malaysia/SLFRS 9 and 15 impact in Sri Lanka
For like to like comparison, 2017 numbers for Smart exclude edotco Cambodia’s results
Our Business Statements and Analysis Our Strategy
XL’s consistent strategy execution led to superior performance
even as the industry declined due to the implementation of SIM
registration. It was the only MNO to have grown subscribers
(+2.6%), revenue (+0.4%) and EBITDA (+2.3%) in a market which
saw 84 million subscribers wiped out in 2018, beating its peers
as the #1 performer in all three metrics. XL was also the most
data-centric operator with 80% smartphone penetration and
82% data revenue contribution in the fourth quarter of 2018.
The continued investment in XL’s 4G network significantly
improved both the user experience as well as the economics
of providing mobile data services. Its 4G coverage has now
expanded to around 400 cities and areas, leading to double-
digit growth in subscribers and revenue for ex-Java. XL’s
Dual Brand Strategy is tracking well with both XL and Axis
brands recording all-time high Net Promoter Scores in 2018.
At the Frost & Sullivan 2018 Asia Pacific ICT Awards, XL was
recognised as the “Best Asia-Pacific Mobile Data Service
Provider of the Year”.
Despite intense price competition, Smart outperformed all its
peers with a revenue and EBITDA growth of 7.2% and 6.0% YoY
respectively. This was mainly fueled by an outstanding 28.3%
growth in data revenue due to healthy subscriber growth and
aggressive 4G adoption. Due to the company’s strict discipline
in “sweating” existing network assets, Smart managed to end
the year with a flattish PAT in spite of higher regulatory costs
and one-off asset write-off.
In its transformation journey to become a converged operator,
Smart launched its first home broadband offering, Smart@
Home, in March 2018. As the industry leader, Smart continues
to drive innovation to develop attractive products and services.
In 2018, it was the first operator in Cambodia to launch eSIM,
Voice over WiFi (VoWi-Fi) and direct operator billing services
with Apple and Google (SmartPay).
In 2018, Smart was recognised as the “Best Emerging Market
Operator 2018” by Telecom Asia.
1
Based on internal estimates
2
Normalised for forex losses in 2017/2018, and asset impairment in 2018
The Value We Create Our Performance
Integ rated Annua l Repor t 2018
As the undisputed market leader, Dialog emerged victorious as
the #1 performer in a fiercely competitive market – delivering
double-digit growth in revenue (+15.2%), EBITDA (+17.4%) and
normalised PAT (+15.8%2). As Axiata’s first converged operator,
this excellent results was contributed by strong revenue growth
across its main segments of mobile (+11.8%), fixed (+44.5%)
and TV (+7.3%).
Dialog’s superior network experience was validated with
Ookla’s 2018 Speedtest Award. It also took a major step
forward by launching South Asia’s first fully standards-based 5G
pilot service. In the third quarter of 2018, Dialog also launched
“Genie”, Sri Lanka’s first Payment Card Industry Data Security
Standard (PCI-DSS) certified mobile payment app.
As one of the most recognised brands in Sri Lanka, Dialog
continues to receive numerous accolades including “Sri Lanka’s
Top Telecommunications Brand” by Brand Finance and “Best
Digital Experience” by the Customer Excellence Award 2018.
In 2018, Ncell was impacted by multiple regulatory challenges
within a competitive operating environment. This includes a
2 ppt increase in Telecommunications Service Charge (TSC)
for voice and other services, introduction of an unprecedented
13% TSC for data services and a 5 ppt increase in corporate
tax rate. Coupled with the expected decline in the high-margin
International Long Distance (ILD) business as consumers switch
to OTT alternatives, Ncell’s 2018 full year revenue, EBITDA and
PAT declined by 1.0%, 4.9% and 19.3% respectively.
Nonetheless, if we dive into the underlying operational
performance, Ncell continues to deliver healthy progress
in its core business due to the exponential growth in data
consumption. In 2018, its core revenue and EBITDA grew by
5.4% and 4.2% YoY respectively while data revenue alone
grew by 18% YoY. Today, its smartphone penetration stands at
59% while only 47% of Ncell subscribers are data subscribers –
indicating significant headroom for future growth.
Our Governance Other Information 47
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 48

Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA Performance People Partnership Planet & Society
MARGIN (%)
• Service revenue growth of 1.1% 1
• Adopted Agile Way of Working • Collaboration with Microsoft • Encouraged digital adoption
mainly driven by revenue from (WoW) company-wide in Enterprise products and in through programmes such
+1.1%1 -4.5%1 prepaid and postpaid • To date, more than 500 developing AI Chatbots utilising as Tuisyen Rakyat, Internet
• Industry leading NPS score employees are Agile trained machine learnings and cloud Access to Rural Community, and
2.3 • Automated Customer Service using solutions Siswapreneurs in 2018
7.3 35.2% 2.21 robotics and Artificial Intelligence • Partnership with Google in cloud
33.2%1
with the launch of Chatbots infrastructure for digital front-end
6.6 6.71 1.9 applications
RM Billion

RM Billion

Operating Environment • Launched Yoodo in early 2018, • Celcom Blue Cube was re-designed, Outlook for 2019 and Beyond
• The Malaysian mobile industry a truly digital and customisable with more than 20 outlets adopting • Digitisation of customer experience
2017 2018 2017 2018 remained flat with intensifying mobile brand, with encouraging new in-store concepts that provided will continue to be a key focus area
competition from smaller players market response enhanced customer experiences with more self service capabilities
• Changes in the regulatory landscape • Launched fixed wireless broadband • Established an award-winning Social made available via digital customer
PATAMI CUSTOMERS with the introduction of regulated to enter the Home market, with Media Experience centre (SMEx) interfaces for both consumer and
wholesale broadband pricing to positive subscriber uptake to respond to customers’ changing Enterprise customers
make broadband services more • Collaboration with Microsoft in behaviours • Personalisation of products,
-64.4%1 -4.9%
affordable at higher speeds to Enterprise products and in developing • Celcom continued to lead the services, rewards and offerings, with
consumers nationwide, resulting in AI Chatbots utilising machine industry in terms of Net Promoter digital lifestyle driven propositions
1.0 9.5 significant reduction in retail pricing learnings and cloud solutions Score (NPS) and received external beyond voice and data
9.1
• Several key policies were reviewed • Partnership with Google in cloud recognition for its superior customer • Enhanced focus on monetising
including the 700 MHz spectrum infrastructure for digital front-end experience with 14 awards in 2018 Celcom’s superior network
0.41 which was originally planned for applications • Continued to champion the national experience to grow core revenues
issuance in 2018 • Adopted Agile Way of Working agenda with multiple programmes and improve profitability
0.3
RM Billion

• The environment remains challenging (WoW) company-wide through aimed at empowering the • Continue growing contribution from
Million

for the mobile sector, with growth Cross Functional Team programmes, underserved to encourage digital Home segment with convergence
2017 2018 2017 2018 primarily driven by strong demand with more than 500 employees adoption. Among key programmes proposition
for data consumption and digital achieving Agile certifications were Tuisyen Rakyat, Internet • Growing Enterprise Solutions and
lifestyle related services • Invested significantly in digital Access to Rural Community and IoT capabilities and portfolio to lead
BLENDED ARPU DATA USAGE transformation focused on customer Siswapreneurs in the Digital Economy and IR 4.0
(Per Data Sub Per
Month) Business Review interfaces and touchpoints, leading era
• Prepaid and postpaid revenues to the launch of a brand new Financial Performance • Sustain our commitments towards
491 continued to grow despite aggressive website, self-service app, online • Service revenue growth of 1.1%1 nation building as a catalyst for
12.4 pricing competition from key market store and digital trade interfaces driven by increased postpaid and Malaysia’s Digital Economy and IR
48
45 players. As a result, Celcom continued • Automated Customer Service using prepaid revenue 4.0, while championing the existing
to grow its market share amongst robotics and Artificial Intelligence • EBITDA of RM2.2 billion1, with Bumiputera national agenda and
the top three mobile operators with the launch of Chatbots EBITDA margin of 33.2%1 Vendor Development Programme
6.7
• Capital investments focused on • Transformed legacy Business • Postpaid and prepaid ARPU saw • Continue with talent development
expanding LTE reaching 91% Intelligence platforms and launched an increase in 2018 with postpaid programmes towards transforming
population coverage nationwide new analytics and insight tools to showing a RM51 increase to RM89, Celcom into a truly Modern, Agile
give the company the competitive while prepaid ARPU increased by and Digital (M.A.D.) organisation
RM

GB

advantage in advanced analytics RM3 to RM35

2017 2018 2017 2018 and data science
Notes:
1
Numbers exclude MFRS 9 and 15 impact for 2018
 Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA

MARGIN (%)
Performance People Partnership Planet & Society
• Revenue growth of 0.4% to • Deployed digital capability • Managed supplier relationships • Continued contributing to
+0.4% +2.0% IDR23.0 trillion driven by data improvements aligned towards via Integrated Supply Chain community development by
revenue growth M.A.D. organisation culture Management, supported by equipping communities with
• Cost optimisation resulted in total • Embedded digital culture through updated e-procurement towards technology and capacity building
8.5
8.3 37.0% operating expenses declining by the digitisation of business ensuring supplier quality and programmes to increase their
36.3%
22.9 23.0 1% and contributing to better processes and an open workspace long-term relationships of mutual well-being
EBITDA margins to encourage collaborations benefits

Operating Environment • Expanded into Enterprise business customer satisfaction as well as • Drove cost optimisation through
IDR Trillion

• Implementation of prepaid SIM as a new growth area with offers to ensuring stable network quality cost efficiencies programme
IDR Trillion

registration regulation in the first attract SME businesses and vendor management. Internal resulting in total operating expenses
half of 2018 led to increased price • Organisation-wide implementation programmes included introducing declining by 1% and contributing to
2017 2018 2017 2018
competition for operators to of “Its XL” core values which agile customer service, talent better EBITDA margins
register customers comprise “Uncompromising development, and energy saving
• Rationalisation of industry pricing Integrity; Team Synergy; Simplicity initiatives related to our business Outlook for 2019 and Beyond
PAT CUSTOMERS
in the second half of 2018 led to and Exceptional Performance” • Contributed to the development of • Positive outlook for 2019, with
stabilisation • Sustained our human capital youth leaders in Indonesia through data as the main driver of
->100% +3.0% • Strong demand for data drove data management focus on including soft skills improvement and digital growth on the back of rising
traffic growth, with more customers employees as stakeholders activities 4G penetration coupled with
switching to 4G as affordable and strategic partners in XL’s • Provided free access to the Internet increased consumption of data
53.5 54.9 handsets are widely available transformation journey for students and proliferation of affordable
• Legacy services continued to • Developed competency, managerial smartphones
decline with voice and SMS on a and technical development Financial Performance • XL is well positioned to capitalise on
downtrend programmes and maintained talent • Revenue grew by 0.4% to IDR23.0 its market access to almost 2 billion
0.4 (3.3) management programmes for trillion driven by growth in data Indonesians through sustained
IDR Trillion

Business Review human capital development • EBITDA grew by 2% to IDR8.5 network roll out ex-Java, towards
Million

• Sustained execution of Dual • Embedded the digital culture trillion, driven by growth in revenue becoming the most preferred data
2017 2018 2017 2018 Brand Strategy, with XL and Axis within the organisation through the and cost efficiencies provider in Indonesia
brands addressing different market digitisation of business processes • PAT declined to a net loss of IDR3.3 • Continue to focus on executing
segments with varied and targeted and an open workspace to trillion due to a one-off accelerated our data-centric strategies of the
BLENDED ARPU TOTAL TRAFFIC
(’000PB) offers encourage greater collaborations depreciation charge. Normalised Dual Brand Strategy and sustained
(includes data, voice • Continued with 4G network • Maintained focus on developing PAT recorded at a loss of IDR9 network investments across
& SMS)
investments, especially in ex- products and services to provide billion Indonesia
Java, resulting in strong growth enhanced customer experience • Average Revenue per User (ARPU) • To sustain our social and nation
2.3 in subscriber numbers, traffic and • Met sustainability objectives down 6% to IDR32,000 due to building contributions in Indonesia
34 32 revenue through a variety of initiatives aggressive price war in the first half
aimed at driving sustainable of the year although pricing started
1.3
business solutions. This included to recover in the second half
external initiatives related to
IDR ’000

PB

2017 2018 2017 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 49
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 50

Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA Performance People Partnership Planet & Society
MARGIN (%)
• Recorded double-digit growth with revenue growth • Launched KPISOFT, • DBN entered into • Contributing to financial inclusion
of 16%, and EBITDA growth of 28% a unified employee partnership with Orion through eZCash, with 3.4 million
+15.9% +28.0% • Commissioned South Asia’s first fully functional and City to build and subscribers
performance
standards compliant 5G transmission management system manage Sri Lanka’s • Smart school programme Headstart
43.5 • Invested in expanding 3G and 4G coverage with first High-Density Data added 100 new schools and
109.2 39.8%
over 3,200 2G, 3G and 4G sites, and won the Ookla Centre introduced a unique digital education
94.2
33.9
speedtest award for 2018 transformation product in collaboration
36.0% with Microsoft

Operating Environment • IdeaMart continues to be the largest • E-commerce site wOw.lk has over • Dialog’s Net Profit After Tax (NPAT)
SLR Billion

SLR Billion

• Maintained market leadership despite developer platform with 11,000 8,000 products in its portfolio, and was impacted by currency volatilities
intense competition and strengthened developers and 17,500 active apps launched the country’s first line and declined by 30% to SLR7.5
subscriber market share • First South Asian telco to launch of “Inspired Gifts” in partnership billion. NPAT post normalisation
2017 2018 2017 2018
• Market focus predominantly on high eSIM technology in partnership with with the United Nations Children’s for non-cash translational foreign
speed networks, evident through Huawei Fund (UNICEF) to support and exchange losses stood at SLR12.2
4G adoption rates, and the need for • First in Sri Lanka to launch VoWi-Fi improve the lives of children and billion, representing a YoY increase
PAT CUSTOMERS 5G expansion strategies • Movie content ViU app recorded communities of 9%
approximately 850,000 downloads • Dialog Axiata Digital Innovation • Driven by accelerated growth in
-30.4% +7.8% Business Review • Launched new music app, Hungama Fund (DADIF) invested SLR144 data revenue, blended ARPU grew
• Remained as market leader, Music million in three startups in 2018 over 4% to reach SLR403
13.8 strengthening subscriber market • Expanded into new growth areas • Smart school programme
10.8 12.8
share by 0.5 pp during the year with with the launch of Avidhrt Sense, Headstart added 100 new schools Outlook for 2019 and Beyond
7.5 a subscriber base of 13.8 million the country’s first portable vital and introduced a unique digital • Sri Lanka continues to see
• 40% of data subscribers on 4G monitor education transformation product rapid transformation in the
network • Doc990 holds over 40% market in collaboration with Microsoft telecommunication space, ranging
• Expanded 3G and 4G coverage with share, with 195,000 customers • Launched a unified performance from high speed data connectivity,
over 3,200 2G, 3G and 4G sites • Sri Lanka’s largest booking platform management system for Cloud service, Emerging Digital
SLR Billion

• Won the Ookla speedtest award for 444, grew 63% YoY employees, KPISOFT, based on Services and Digitisation
Million

2018
2017 2018 2017 2018 • Commissioned South Asia’s first fully
functional and standards compliant
5G transmission using commercial
grade base stations
BLENDED ARPU BLENDED MOU
(Per Sub Per Month) • Expanded mobile roaming capacity
through collaborations to reach 676
operators and 230 countries
• e-wallet service eZ Cash has
403 121 a customer base of 3.4 million
117 subscribers, and launched a new
387 feature enabling customers to top-
up their eZ Cash wallets via bank
Minutes of use/sub/month
• Strong performance in the Fixed
and TV space, with DBN Services
(Dialog Broadband Network) in over
800,000 corporate and individual
customers, and TV presence
surpassing 1 million subscribers (17%
YoY customer base growth)
• DBN entered into a joint venture
partnership with Orion City to build
and manage Sri Lanka’s first High-
Density Data Centre (200 racks) at
the Orion City IT Park in Colombo
• Launched Dialog PlayExpo, Sri
Agile Performance Management
along with a mobile app featuring
online and real time feedback
• Incorporated Agile WoW within the
company focusing on digitisation
initiatives
Financial Performance
• Continued with growth momentum
across all key business segments of
Mobile, Fixed, Digital Pay Television,
International and Tele-infrastructure
businesses to record consolidated
• Market focus is predominantly on
high speed networks, as evident
through 4G adoption rates and
the requirement of 5G expansion
strategies
• Future is firmly focused on digital
and the telecommunications
industry is shifting its business
model from delivering organic
telecommunication services, to
advancing digital services
• Telco industry is expected to
witness an increase in demand

accounts Lanka’s largest video games and revenue of SLR109.2 billion, for content and will move towards
• Launched Genie - Sri Lanka’s first eSports championship and the first demonstrating a growth of 16% YoY digital services
PCI-DSS certified mobile payment Augmented Reality (AR) calendar • EBITDA grew by 28% to reach • Bearing all these factors in mind,
app in 2018 showcasing Dialog’s commitment SLR43.5 billion, translating to an Dialog will maintain its strategies
to cutting-edge technology to EBITDA margin of 40% for 2018 towards capturing opportunities for
SLR

strengthen brand recognition profitability and growth in line with

2017 2018 2017 2018 Axiata’s 3.0 strategic blueprint
 Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA Performance People Partnership Planet & Society
MARGIN (%)
• Airtel and Robi are #1 and #2 brands • New guiding principles, • Established in-house • Launched new employee
respectively in NPS for 2018 digital learning tools and Development Operations entrepreneurship programme,
-0.5% 28% • Due to its Cost Efficiency Programme, Robi a revamped performance team for business process r-ventures
saved more than 10% on capex budget and management system were simplification and automation • Robi-10 Minute School is
exceeded opex savings target significantly introduced to align with the to reduce time-to-market the largest online school in
68.3 68.0 M.A.D. organisation culture and grow business Bangladesh providing quality
educational content to youth for
free

16.7
13.0 24.5% Operating Environment Business Review as, Lynda.com, and revamping the Outlook for 2019 and Beyond
BDT Billion

BDT Billion

19.0% • Technology neutrality was introduced • Robi aggressively expanded its performance management system • Introduction of a unified call rate
as a game changer in optimising 4.5G network, which led to business are key highlights in this connection by abolishing the differential on-net
network resources for ensuring expansion in markets it had struggled • Launched an employee and call rates has created space for
2017 2018 2017 2018
Quality of Service (QoS). The QoS historically entrepreneurship programme, a sustainable business environment,
regulation was revised, with new QoS • Leadership position in 4.5G and r-ventures, with a view to encourage while a heavy taxation regime and
benchmarks for telcos introduction of MNP resulted in digital entrepreneurship among the a lack of floor price for data service
PAT CUSTOMERS • Launch of 4G in February 2018 significant gains in customer base employees remain as areas of concern
led to significant growth in data • Robi’s Digital Transformation • The largest online school of • To focus on digitisation and cost
+>100% 9.0% consumption Index (DTI) score reached 6.5 at Bangladesh, Robi-10 Minute School optimisation to remain competitive
• Introduction of unified floor price for the end of 2018. Compared to continues to grow with ever more in the market
46.9 voice created a level playing field in 2017, this score had improved by students from across the country. • To improve profitability, Robi will
the voice call market 60% in a year indicating that the It continues to introduce innovating focus on revamping its cost structure
42.9
• Introduction of Mobile Number company is delivering on its digital digital learning tools and content to through process efficiency, active
Portability (MNP) Service in October transformation strategy help youth get ready for IR 4.0 infrastructure sharing and industry
2018 • Successfully monetised its Dual collaborations
• The regulator introduced Significant Brand Strategy following excellent Financial Performance • In order to strengthen its core telco
2.1 Market Player (SMP) guidelines, merger integration • Robi’s revenue reached BDT68 revenue stream, Robi will solidify
BDT Billion

(2.8)
setting a threshold of 40% market • Sustained focus on process billion following a decline of 0.5% its leading position in Dhaka, and
Million

share in terms of subscriber, revenue
2017 2018 2017 2018 or spectrum holding to ensure there
was no monopoly in the telco sector
• Introduction of session based pricing
for Mobile Financial Services (MFS),
BLENDED ARPU BLENDED MoU with MFS to pay MNOs for both
revenue generating and non-revenue
generating transactions
130 • Regulator increased transaction
128 amount on subscribers purchase of
119 digital services via direct operators
Blended ARPU/Sub/month
efficiency and simplification, as
well as digitisation, to optimise cost
structure
• Focus on Enterprise Business and
Digital Services resulted in double
digit growth in Enterprise and 2x
growth in Digital Businesses
• Explored new innovative
partnerships to create new revenue
streams
• Explored passive infrastructure
from last year
• Robi also saved more than 10%
on capex budget and exceeded
opex savings target significantly
on the back of its Cost Efficiency
Programme, leading to EBITDA
improving to BDT16.7 billion in 2018
from BDT13.0 billion in 2017
• Successful profit turnaround, with
PAT positive of BDT2.1 billion, from
Loss After Tax of BDT 2.8 billion in
expand growth to other areas
• To meet evolving customer needs,
Robi will expand its digital services,
especially in capturing opportunities
in Enterprise and IoT, as well as
Convergent telco services
• Sustain its momentum in building a
digital talent factory by inculcating
the DNA of digitisation, analytics
and innovation to future-proof the
business in line with Axiata 3.0

104
Minutes of use/Sub/month

billing sharing by reconciling 100+ sites; 2017 • Leveraging on digitisation as the

• Introduction of Electronic Telecom
Subscriber Acquisition Form (ETSAF)
for e-registration of subscribers from
September 2018, making it more
convenient for customers to acquire
a SIM
2017 2018 2017 2018
Robi is focused on collaborating • Minutes of use per subscriber per key enabler to facilitate functional
with the industry in this regard month (MoU) decreased from 128 in superiority and business growth
• Introduced a number of initiatives 2017 to 104 in 2018, while blended • Maintain its commitment to establish
geared towards the M.A.D ARPU declined to BDT 119 per user Robi as the national champion
transformation of the organisation. in 2018 from BDT130 per user in in Bangladesh through strong
Introduction of new guiding 2017 corporate governance and socially
principles, digital learning tools, such responsible initiatives

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 51
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 52

Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA Performance People Partnership Planet & Society
MARGIN (%)
• Maintaining a positive growth of • Increased investment in • First telco to launch direct • Signed USD1.5 million MoU with
revenue, EBITDA, market share people development through operator billing with Apple and Ministry of Education, Youth and
+7.2% +6.0% and ARPU Smart Education Sponsorship Google Sports and Ministry of Posts and
• Perceived industry leader in cyber Programme, Functional • First telco to launch eSIM and Telecommunications to develop
287.5 security initiatives Competence Building, First Line VoWi-Fi future talents and digital corporate
134.8 Manager Training Programme • Launched fixed wireless leaders over the next three years
268.2 127.2
47.4%
46.9% • Promoted digital learning through broadband proposition • Launched SmartEdu University
Lynda.com and Coursera Student Development Programme
• More than 1% of annual revenue
committed to CSR initiatives
USD Million

USD Million

Operating Environment SmartNas is currently fully managed • Perceived industry leader in Tech • The government’s National Rectangular
• Increasing smartphone adoption by the internal DevOps team Innovation initiatives through Strategy IV has identified the digital
2017* 2018 2017* 2018
rate, digital literacy and social media, • Superior Video Mean Opinion and involvement in the Tech Summit, economy and IR 4.0 as priority focus
as well as mobile data usage DTI scores international pitch competitions areas. The digital economy, tech
• Intense price war and growing • Sustained investment in people and the SmartStart as well as innovation and SME agendas are
PAT CUSTOMERS
regulatory cost burden development through employee SmartSpark programmes gaining traction within the ICT sector
sponsorship programmes, competency and amongst multiple ministry
-0.8% +3.0% Business Review training and promoting online Financial Performance policy makers, with policy incentives
• Launched fixed wireless broadband learning • Strong focus on cost management, being explored to catalyse the
68.1 67.6 7.5
proposition, Smart @Home • Experimented with new Agile asset utilisation and capex efficiency development of early and medium-
7.3
• First to launch VoWi-Fi and eSIM WoW such as cross-functional resulted in Smart achieving a stage digital startups. There are huge
• Extended SmartPay, a direct teams across commercial, customer strong double-digit EBITDA margin opportunities in digital services,
operator billing service to Apple experience and IT with new features and PAT. Although PAT declined with many companies targeting
ecosystem being developed using scrum marginally due to higher regulatory Digital Financial Services in line with
• Entered the IoT space in the areas of • Introduced the Smart Employee cost share and one-off asset write- enabling digital financial inclusion
USD Million

remote security, vehicle monitoring Volunteer Programme to incentivise off, EBITDA grew by 6% • ICT policy makers are looking
Million

and asset tracking
2017* 2018 2017 2018
• Provided the most affordable mobile
bundles, with leadership in digital
lifestyle and entertainment services
BLENDED ARPU BLENDED MOU • Expanded rural roll out through
(Per Sub Per Month) Universal Service Obligation Fund
while more than 95% of total base
stations were equipped with 4G
176
• Perceived industry leader in cyber
security protections and safeguards
171
• Smart’s selfcare app, SmartNas -
2.32
Minutes of use/sub/month
great CSR and sustainability
programmes initiated by Smart’s
employees
• Signed a USD1.5 million Memorandum
of Understanding (MoU) with the
Ministry of Education, Youth and
Sports and Ministry of Posts and
Telecommunications to develop
future talents and digital corporate
leaders for the next three years
• Launched SmartEdu University
• Recorded strong YoY performance
fueled by positive customer growth
and outstanding data revenue
contributions. Overall revenue grew
7.2% in tandem with customer and
ARPU increases
• Outstanding data growth of 28%,
with data accounting for 60% of
total revenue. Data traffic more than
doubled YoY
towards enabling 5G, with clarity
on standardisation of spectrum
policies in progress. Further industry
consolidation is expected in future
• Promoting ICT education along with
its elements, such as coding, literacy
and entrepreneurship at various levels,
is generating more youth human
resource talents, with more than 50%
under the age of 25 years old
• In line with capturing opportunities in

2.02 a single touchpoint for all Smart
subscribers’ transactions, is not
limited to managing plans and
services, but expands to managing
VAS and Smart’s loyalty programme.
USD
Student Development Programme,
mirroring Axiata Young Talent
Programme, which focuses on
nurturing future CEOs
• More than 1% of revenue committed
to CSR initiatives in line with
Outlook for 2019 and Beyond
• The Asian Development Bank
expects Cambodia’s economy to
remain strong over the next two
years, with 7% growth estimated
for 2019, as it moves from a lower-
this new digital environment, Smart
will press ahead with its strategies
to drive profitability, whilst playing a
key role in developing the ICT sector
and building a Digital Cambodia

Government priorities middle-income nation to upper-

2017 2018 2017 2018 middle-income in the next decade
Note:
* For like to like comparison, 2017 numbers excluded edotco Cambodia’s results
 Integ rated Annua l Repor t 2018

REVENUE EBITDA & EBITDA Performance People Partnership Planet & Society
MARGIN (%)
• Growth in core revenue • 80% of employees • Expanded data population coverage to over 55% • Sustained efforts in Disaster
and data revenue by 5.4% participated in Ignite Session • Expansion of broadband coverage in rural and Response and Technopreneurship
-1.0% -4.9% and 18% respectively towards transforming into a remote areas in line with the National Broadband • Enabling digital literacy via Ncell
M.A.D. organisation Policy Digital Libraries
37.3
58.1 64.3% 35.5
57.5 61.7% Operating Environment Business Review • With the aim of providing our voice usage for fixed wallet
• Multiple challenges within a • Expanded data population coverage stakeholders an account of our segment to be offset by higher data
competitive operating environment, to over 55% sustainability initiatives and value usage to access OTT services, with
with telcos’ growth prospects • Implemented digital initiatives creation efforts, Ncell finalised the projections of data revenue and
NPR Billion

NPR Billion

impacted by an increase in the such as Customer Lifecycle process for its Sustainability Report subscribers to increase by 29% and
Telecommunications Service Management which supports 16% respectively
Charge (TSC) from 11% to 13% customer acquisition, retention Financial Performance • Target opex savings of NPR506
2017 2018 2017 2018 for voice and other services, and and customer win-back, Travel million, and capex savings of over
• Recorded revenue of NPR57.5 billion,
from no tax to 13% for data. This Management, Chatbots, Social with data revenue of NPR12.97 billion NPR600 million for 2019
resulted in shrinking revenue share Listening and employee Gamification • PAT decreased by 19.3% to NPR15.3 • Sustain talent development and
PAT CUSTOMERS for operators, and a trade-off in and Ticketing, towards achieving billion, mainly due to expected employee engagement programmes
consumer spending from voice to functional superiority and digitisation decline in high-margin ILD business, towards establishing a M.A.D.
-19.3% -0.6% data is expected in the future • Began exploring options for growth but this impact was mitigated by organisation
• Spectrum limitation in the low in the area of Digital Financial opex savings of NPR618 million • Driving customer-centric strategies
18.9 spectrum bandwidth of 1800 Services (DFS) contributed by reducing expenses of Customers to Fans (C2F),
16.4 16.3 MHz, resulting in telcos expanding • Achieved superior brand tracker Retailers to Advocates (R2A) and
15.3 in recharge cards, IP Transit, VSAT
network roll out to compensate for index compared to competitors Bandwidth, Network and IT AMCs, Employees to Cheerleaders (E2C)
limited spectrum compounded with • In line with expanding into IoT, Ncell and SIM cards. Additionally, Ncell • To maintain engagement with
import license delays partnered with Aeris to successfully recorded capex savings of over regulatory authorities, and work
• Decline in International Long conduct a pilot launch of vehicle NPR2 billion in 2018 collaboratively to reduce spectrum
NPR Billion

Distance (ILD) revenue, with traffic tracking with local company SixT • Lower operational expenses achieved gap, mitigate voice, data tariff
Million

reducing by 33% in 2018 • Conducted cultural workshops through effective cost management corrosion and other associated
• Increase in Corporate Tax rate for team heads, unit heads and initiatives resulting in EBITDA of compliance risks, and shape the ILD
2017 2018 2017 2018
from 25% to 30%, impacting upon section managers, as well as staff NPR35.5 billion, with a healthy margin and interconnection regime
companies’ PAT towards transforming into a M.A.D. of approximately 62% • Maintain commitment towards
• New labour law introduced, with organisation • ARPU decreased from NPR298 in Digital Nepal initiatives by building
BLENDED BLENDED MoU
ARPU (Per Sub Per Month) additional benefits and an increase • Expanded broadband coverage 2017 to NPR286 in 2018 partnerships and alliances with
in the minimum wage, affecting in rural and remote areas in line global and in-country partners
298 salaries costs for companies with the goals of the National Outlook for 2019 and Beyond towards nation building
286 Broadband Policy; and sustained • With YoY decline of 2.0% expected
efforts in Disaster Response and in voice for 2019, Ncell is focused on
173 Technopreneurship driving profitability in new growth
170
• Ncell also contributed towards areas such as Device Bundling,
Minutes of use/sub/month

enabling digital literacy via Ncell Enterprise, Convergence and DFS

Digital Libraries • Expect revenue decline in domestic
NPR per Month

2017 2018 2017 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 53
 Our Business Statements and Analysis Our Strategy
REVENUE TENANCIES Performance
& TENANCY
GROWTH • Achieved revenue of RM1.8 billion for
1
+14.0% 2018, resulting in double digit growth
+23.0%1 0.05x for the year
• Contributed 7.4% and 8.2% to Group
29,572 revenue and EBITDA respectively1
1.62x • Increase in tenancy ratio to 1.62x by
25,878 end of 2018 compared to 1.57x in 2017
1.57x
• New tower build increased by 10.3% by
end of 2018, compared to 9.3% in 2017
No. of Tenancies
1.81
1.4 Operating Environment
RM Billion
1.5 • With accelerating demand for 4G,
nearly all MNOs in the region are
2017 2018 2017 2018 turning to towercos to provide
shareable infrastructure
• Growth in data demand in more
mature markets such as Malaysia
and Bangladesh, among others, led
to greater need for next generation
solutions like In-Building Solutions
(IBS), small cells and BTS among
others
Business Review
• Significant contributions to Group
performance
- edotco significantly contributed
to the Group with a growth in
revenue from 5.9% in 2017 to 7.4%1
in 2018, and an increase in towers
and tenancies of 10.3% and 14.3%
respectively
- Ended the year with an all-time
high co-location ratio of 1.62x
- Ended 2018 with total tower count
of 29,837 towers owned and
managed, an addition of 2,373
from 2017
- Ended 2018 with 29,572 tenancies,
an addition of 3,694 from 2017
• Significant growth in portfolio
- Signed agreement to enter the
Laos market with a local partner
Note:
1
Excluding MFRS impact in 2018
The Value We Create Our Performance
People
• Enhanced people platforms
via increased use of
engagement initiatives
including digitising office work
processes and improving
benefits
- Successfully received tower
sharing license in Bangladesh,
allowing edotco to build and
manage telecommunications
towers for multiple mobile
operators in the country
- Acquired 325 towers from South
East Asia Telecom (Cambodia)
Co. Ltd, expanding portfolio in
Cambodia to over 3,600 towers
- Acquired Yiked Bina Sdn Bhd,
expanding portfolio into Kedah,
Malaysia with 225 towers
- Operationalised On Site Services
Sdn Bhd, the largest independent
First Line Maintenance entity with
400 employees, managing over
10,000 network sites throughout
Malaysia
• Innovating the industry across the
footprint
- Deployed next generation IBS –
four in Cambodia, 14 in Malaysia
and three in Myanmar
- Deployed the world’s first multi-
tenant, multi-operator small cells
solution in Kuala Lumpur, Malaysia
- Digitised preventive maintenance
for towers using drone technology,
resulting in 50% improvement in
reporting time and 35% reduction
in turnaround for data collection
and report generation
Our Governance
Integ rated Annua l Repor t 2018
Partnership
• Signed partnerships with
Sumitomo Corporation and JTower
Inc to advance next generation
technology solutions to improve
connectivity offerings
• Signed partnership with Huawei
Malaysia to deploy the world’s first
multi-tenant, multi-operator small
cells solution in Malaysia
-
Signed partnerships with
Sumitomo Corporation and JTower
Inc to advance next generation
technology solutions to improve
connectivity offerings
• Championed sustainability in the
business
- Took over energy assets
and management on 1,250
telecommunications tower sites
across Myanmar from Ooredoo
Myanmar Limited
- Ended 2018 with a total of 1,112
green sites utilising renewable
energy and alternative materials
for tower construction
- Achieved 44% reduction in carbon
emission, surpassing target set by
Group by 4% a year in advance
- Impacted a total of 1,020 families,
30 mosques, 28 schools and one
hospital in Bangladesh through the
Tower to Community project
• Received regional and international
recognition
- Awarded the Frost and Sullivan
Asia Pacific Tower Company of
2018 for exemplary business
performance
Other Information 54
Planet & Society
• Achieved 44% reduction in
carbon emission, surpassing
target set by Group by 4% a
year in advance
• Impacted a total of 1,020 families,
30 mosques, 28 schools and one
hospital in Bangladesh through
the Tower to Community project
Outlook for 2019 and Beyond
• To focus on taking an innovative
approach by deploying next
generation technology solutions,
both with customers as well as
internally with our teams
• To continuously explore
opportunities to expand the
business organically and
inorganically to further strengthen
our position as a leading integrated
telecommunications infrastructure
services provider
• Committed to continue championing
social responsibility by proactively
reducing the carbon footprint
and impacting the environment
positively through sustainable
infrastructure design and business
practices
• Aim to continuously develop the
communities in which we are present
through our Tower to Community
projects and other nation building
engagement initiatives
 Integ rated Annua l Repor t 2018

What We Do
• Boost is a proudly homegrown lifestyle e-wallet that revolutionises the way • Backed by Axiata Digital’s vast expertise in digital technology, Boost is at the
Performance consumers transact daily, bringing convenience and security through a cashless frontier of the Malaysian digital economy and now the leading e-wallet in the
ecosystem country with an ambition to become Malaysia’s preferred lifestyle e-wallet
• Gross Transaction Value: 21x
growth YoY
• Registered Users: nearly 6x
growth from 645,414 in 2017 to
3.5 million in 2018 By the end of 2018, Boost saw a surge in users with In 2018, Boost registered more than 61,500
over 3.5 million registered users embracing digital merchant e-wallet touchpoints generating
• Registered Merchants: 24x over 1,210% YoY growth in transactions
payments
growth from 2,500 in 2017 to
more than 61,500 in 2018

Online Food Public Bill

Shopping Delivery Transport Payments
Micro Store Static QR
Financing Locator Payments

People
Parking Mobile QR Movie
• Doubled employee headcount for Top Up Payments Tickets
rapid business expansion

Payment Campaign Settlement

Terminal & Marketing Reports
Intergration
P2P Split Donation Digital
Transfer Bill Vouchers

Partnership
• Rolled out new lifestyle features
2018 including peer-to-peer
money transfers, street parking
payments, bill payments,
transportation ticket payment
and bookings, and e-vouchers
Planet & Society
• First e-wallet to introduce
e-donation for users to contribute
to charitable causes
Operating Environment
• Sensing the future potential of e-wallets due to
the rise in Internet and smartphone penetration
rates, as well as Bank Negara Malaysia’s (BNM)
push for a cashless society, competition in this
space is increasing
• Adoption of e-wallets are not expected to surpass
other payment options such as debit cards and
credit transfers, due to cyber security concerns
Business Review
• Worked collaboratively with stakeholders such as
BNM to raise public awareness on e-wallets as a
simpler and more secure transaction
• Adhered to financial sector regulations to ensure
sound business practices
• Expanded partnerships with merchants Outlook for 2019 and Beyond
nationwide, providing a mix of small cash-based • Continue to grow user and merchant base in the
businesses and big brands to reach different user short-term
segments • Explore micro-financing and micro-insurance for
• Expanded service offerings to include peer-to- small businesses through partnerships with other
peer money transfers, street parking payments, Axiata Group entities, contributing to financial
bill payments, transportation ticket payment inclusivity for micro-businesses lacking support
and bookings, e-vouchers and e-donations, from conventional banks in the longer term
pioneering a majority of these functionalities that • Expand beyond Malaysian borders through
have since become industry standard partnerships to bring about cross-border e-wallet
• Doubled employee headcount in line with interoperability
aggressive ramp-up in operations to support its
expansion
• Use of data analytics to monitor team
performances
• First e-wallet to introduce e-donations for
users including for mosques and temples in
several states across the country, as part of
its commitment towards contributing to the
well-being of communities

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 55
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 56

Integ rated Annua l Repor t 2018

What We Do
• Largest independent data-powered digital marketing agency across South and • Three business pillars include Integrated Planning & Delivery, Deep Media
Performance Southeast Asia combining the best of data science, media and content to unlock Integration and Merged Analytics
potential from digital branding for businesses across the region • Operates across nine countries (Malaysia, Thailand, Indonesia, Philippines,
• Net revenue growth rate of 122% • Well positioned to disrupt traditional agencies given unique approach of both Singapore, Korea, Sri Lanka, Bangladesh and Cambodia)
YoY
product marketing and services
• Advertiser billings growth rate of
96% YoY

Integrated Planning & Merged

Delivery Analytics

People
• Attracted a diverse mix of talent
from global agencies, consulting
firms, technology and analytics Media Planning Facebook Data Consulting
practices across our nine markets Digital Creatives Google Data Enrichment Powered by
Ad Operations Telco Audience Center deep data
Growth Hacking AVOD assets

Partnership
• Established major partnerships
with Google, iflix, Hooq,
FreedomPop and Intelligence
Machine
Planet & Society
• Initiated CSR initiative for CLC
Saga Kampung Likas in Kota
Kinabalu, Sabah
Operating Environment
• 2018 was a challenging year for the advertising
industry with structural market changes especially
due to technology disruption, regulatory
developments, increasing competition and shifts
in how consumers engage with brands
• Despite these challenges, the market expected
to see double digit growth in digital advertising
spending within Southeast Asia
Business Review
• Launched “Agency of the Future” through the roll
out of new products and data-driven offerings as
follows:
- Outcomes: Outcome or acquisition business
model delivering specific business outcomes
at zero risk to marketers
- Creative: Data-driven creatives for better
targeting and conversion
- Programmatic: Automated delivery of ads
across multiple channels
Deep Media
Integration
- Data-as-a-Service: Data insights and
visualisations which address key industry and
business problems
- Advertising video-on-demand (AVOD):
Advertising video inventory through exclusive
partnerships with iflix, Hooq and Viu
• Established major partnerships with Google,
iflix, Hooq, FreedomPop and Intelligence
Machine
• Rolled out ada’s own regional industry event,
Re.Con, in partnership with Campaign Asia
• Attracted a diverse mix of talent from global
agencies, consulting firms, technology and
analytics practices across our nine markets and
hired key leaders going into 2019
• Developed our product stack from one
product, Adparlor, to a full suite of products
across Service, Automation, Omni-Channel
Engagement, Business Insights and Data
• Built data-driven products in-house via our
proprietary data management platform, Xact
• Developed deep data assets where we now have
data from 280 million unique devices and more
than 200 data attributes
• Initiated a Corporate Social Responsibility (CSR)
initiative for CLC Saga Kampung Likas in Kota
Kinabalu, Sabah where about 250 people worked
together to repair the school with teachers and
students as part of ada’s company retreat activity
• Embarked on collaborations with Payong on ideas
to uplift awareness on refugees leveraging our
digital advertising capabilities
Outlook for 2019 and Beyond
• Bright prospects ahead in 2019 as more businesses
shift from traditional advertising budgets to digital
advertising budgets
• ada plans to grow its team headcount in line
with business growth and invest into our people
to facilitate the development of a more mature
organisation
 Integ rated Annua l Repor t 2018

What We Do
• Apigate is Axiata’s homegrown global Application Programming Interface (API) • Combines the innovative insights of a telco group and the technology of an
Performance platform that connects businesses to a world-class ecosystem and customers award-wining open source Middleware to unlock new streams of revenue for
from around the globe MNOs while connecting digital merchants to find the right customers at the right
• YoY GTV of 3.1x time and the right place
• YoY Net revenue growth of 4.8x

We enable Digital Merchants to find the right customer at the

right time and the right place We enable MNOs to unlock new sources of revenue

CONTENT AND SERVICE

MOBILE NETWORK
OPERATORS
PROVIDERS
Targeted Digital Anti Rapid Enable New Services
Acquisition Trust Fraud Digitisation and Business Model

People
• Crafted a set of Core Values
under our new One Apigate
company Increased Global Top-Tier Monetisation
Conversion/ Reach Content
Retention

ONE PLATFORM CONNECTED TO 110+ MNOs AND REACHING OVER 3.5B MOBILE USERS

Partnership
• Apigate enables connectivity
and monetisation with a reach
of 3.5 billion consumers, over 110
MNOs and approximately 250
connected merchants as of
31 March 2019
Planet & Society
• ApigateGo - a suite of
educational and enablement
programmes designed to
bring early stage companies,
developers and students to the
API economy
Operating Environment
• While telco revenue and profitability have been under
pressure in an increasingly competitive environment
driven by data service commoditisation, Over-The-
Top (OTT) digital services offer the opportunity to
generate new revenue streams and to create a new
phase of growth for telcos globally
• Near ubiquitous 4G deployment and rising
smartphone penetration in Asia continued to drive
the proliferation of mobile entertainment services
such as mobile gaming, music streaming and
Video-On-Demand (VOD)
• Western markets for digital services such as VOD
have become heavily saturated, while China last
year imposed heavy restrictions on new game
release, forcing digital merchants and game
developers to seek growth in our region
• Low credit card penetration remained a key
challenge for monetisation and carrier-billing
continued to be a viable payment option to serve
millions of users in these markets
• The multi-billion-dollar acquisitions of API
behemoth Mulesoft by Salesforce and open-
source software giant Redhat by IBM in 2018 also
highlighted the pivotal roles of these technologies
to the wider Enterprise Software industry, and
Software as a Service (SaaS), specifically
Business Review
• Evolved from being an ‘internal’ division exposing
Axiata OpCos’ APIs to being a fully-independent
entity serving telcos across the region
• Consolidated business under ‘One Brand, One
Team’
• Completed the acquisition of WSO2 Telco and
consolidated the engineering team into our global
R&D team under our new ‘One Apigate’ company,
we have crafted a set of Core values – One Team;
Trust; Be An Expert; Act Now; Customer Success
• Drafted a new full-suite of end-to-end services to
better serve our digital service merchants across
the customer journey to provide ‘frictionless
payment’ and drive revenue maximisation
Outlook for 2019 and Beyond
• In line with current industry trends and
developments, Apigate, with its open-source
API platform, is well-positioned to capture
opportunities as a telco API layer enabling global
digital merchants to access users in ASEAN and
Southeast Asia, and local telecom operators to
generate new revenue streams from their existing
subscribers
• In the medium-term, Apigate will further improve
operational efficiency to increase scalability and
expand partnerships, as we build a replicable
playbook that will become the cornerstone of our
expansion to other emerging markets
• As we scale globally, we are progressively building
a global team that can serve our customers in the
three main markets where we will operate - Asia,
Africa, Latin America

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 57
 Our
Governance

Corporate Governance Overview
The Board of Directors of Axiata Group Berhad
(“Board” or “BOD”) strongly advocate and support
the principles of good corporate governance.
The Board has continually strived to enhance
and strengthen the Group’s governance system
and processes, to ensure that the highest levels
of corporate governance is practised Group-
wide. This Corporate Governance Overview
Statement (“CG Overview Statement”) presents
key governance highlights for the financial year
2018 outlining how Axiata complies with the three
principles, 32 practices and four Step-ups of the
Malaysian Code on Corporate Governance 2017
(“MCCG 2017”) during the year under review.
This statement has been made in accordance
with the authority of the Board dated
21 February 2019 and finalised and updated until
the date of the publication of the Integrated
Annual Report (“IAR”) 2018 with delegated
authority to the Board Annual Report Committee
(“BARC”).
This statement is complemented with a Corporate
Governance Report (“CG Report”) based on a
prescribed format pursuant to paragraph 15.25
of the Main Market Listing Requirements (“Main
LR”) of Bursa Malaysia Securities Berhad (“Bursa
Securities”). The CG Report is available on the
Company’s website https://www.axiata.com/
files/upload/corporate/Corporate_Governance_
Report.pdf as well as via an announcement on the
website of Bursa Securities. This statement should
also be read in conjunction with the Statement on
Risk Management and Internal Control (“SORMIC”)
and the Board Audit Committee (“BAC”) Report
as well as other information in the Governance
and Audited Financial Statements 2018 (“GAFS”)
and the Sustainability and National Contribution
Report (“SNCR”) accompanying this IAR.
GA For complete details of the SORMIC, please refer to pages 23 to 32.
FS
For complete details of the BAC Report, please refer to pages 33 to 34.
Our Business Statements and Analysis
In pursuing its vision to become a New
Generation Digital Champion by 2022, Axiata
is implementing its Triple Core Strategy to
develop its Digital Telco, Digital Businesses and
Infrastructure Businesses, alongside its Digital
Transformation Strategy aimed at digitising
and modernising its internal and external value
chains. In efforts to realise this vision, the Board
is cognisant of upholding its duties according
to the highest principles of accountability and
transparency.
The Board maintains its commitment towards
discharging its duties according to the highest
standards of corporate governance, whilst
pursuing its corporate objectives to enhance
shareholders’ value and overall competitive
positioning.
Axiata’s Corporate Governance Framework is developed based on the following:
Companies Act 2016
(“CA 2016”)
Our Strategy The Value We Create
Integ rated Annua l Repor t 2018
The Board recognises the importance of practicing the highest levels of governance and
plays an active role in administering and reviewing the Group’s governance practices
and framework to ensure its relevance and ability to meet future challenges. The Board
prioritises the necessity to ensure that there is a robust and effective corporate governance
system employed throughout the Group, in line with its governance commitments.
As one of the top 10 largest entities listed on the Main Board of Bursa Securities as at end
of March 2019, the Board has always ensured that Axiata remains at the forefront of good
corporate governance. Through the years, the Group has been consistently recognised
for its high levels of disclosures, reporting and upholding the strongest principles of
governance. Over the last many years, Axiata has consecutively received accolades
at the Minority Shareholder Watch Group (MSWG) – ASEAN Corporate Governance
Recognition Awards. In 2018, the Group received the following awards:
Top 50 ASEAN Public
Top 3 PLCs 2018
Listed Companies
(“PLCs”) (Top 11-30)
CORPORATE GOVERNANCE FRAMEWORK
Corporate Governance Guide:
Main LR of
MCCG 2017 3rd Edition issued by Bursa
Bursa Securities
Malaysia Berhad
Our Performance Our Governance Other Information 59
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 60

Integ rated Annua l Repor t 2018

Corporate Governance Overview

The culture of upholding strong corporate governance principles is embraced across the A summary of the Group’s corporate governance practices with reference to the MCCG 2017 is
organisation and is led by the Board which sets the tone at the top. The release of the described in the following manner:
MCCG 2017 by the Securities Commission Malaysia in April 2017 brought about a review
of Axiata’s corporate governance practices with continuous efforts undertaken to identify
GROUP’S CORPORATE GOVERNANCE PRACTICES
and close the gaps. A major achievement through relentless effort in 2018 is to meet the
requirement under Practice 4.5 to have at least 30% women representation on the Board
with the appointment of Dr Lisa Lim Poh Lin and Khoo Gaik Bee on 8 June 2018 and
Principle A:
1 January 2019 respectively.
Board Leadership and Effectiveness
As at the date of this IAR, Axiata has applied all the practices in MCCG 2017 except for the following: Group Corporate Governance Structure, Board and Board Committees’ Roles and
Responsibilities, Board Composition, Effectiveness and Remuneration.
• Practice 4.3 - Step-up
The Board has a policy which limits the tenure of its independent directors to 9 years.
IAR
For complete details of Principle A, please refer to pages 62 to 77.
In 2016, Axiata had put in place a phased retirement plan for Independent Non-Executive
Directors (“INEDs”) where one INED reaching or completing the 9-year tenure will retire each
year. This will stagger INEDs’ retirement, most of whom were appointed in the same year, in
order to maintain continuity and stability. The objective is to have a fully refreshed Board by Principle B:
year 2020. As the phased retirement plan is still ongoing, it is currently not possible for Axiata to Effective Audit and Risk Management
adopt a 9-year term limit for INEDs. However, INEDs are not expected to serve as independent
beyond 12 years. Board Audit Committee and Risk Management and Internal Control Framework.

• Practice 7.2 and 7.3 - Step-up

Practice 7.2 requires the disclosure of the remuneration of the top 5 named senior management IAR
For complete details of Principle B, please refer to pages 78 to 81.
while the Step-up in Practice 7.3 encourages disclosure for all members of senior management
on a named basis.

The Board is of the view that due to the sensitivity of the information, disclosing the remuneration Principle C:
of senior management is not in the best interest of Axiata at this point in time. The Board will Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders
however re-evaluate this requirement for disclosure annually.
Communication with Stakeholders and Conduct of General Meeting.
• Practice 12.3
Practice 12.3 requires companies with a large number of shareholders or which have meetings in
remote locations to utilise technology to facilitate voting in absentia and remote shareholders’ IAR
For complete details of Principle C, please refer to page 82.
participation at General Meetings.

The availability and suitability of a reliable system able to provide the required services to
facilitate voting in absentia and remote participation by shareholders will be explored.

More details and explanations for these departures are provided in the CG Report as well as the
measures put in place to address such departures.
 Integ rated Annua l Repor t 2018

Corporate Governance Framework

COMPLIANCE ASSURANCE
Share h o l d ers
1 1
Main LR of Bursa Audit of financial data
Securities & Company Board of Directors and review of social
Act 2016 and environmental data
(internal & external)

2
Board Audit Board Board Axiata Digital Board 2
MCCG 2017 Committee Nomination and Risk Management Business Annual Report
(“BAC”) Remuneration Committee Investment and Committee Facilitation and
Committee (“BRMC”) Oversight Board (“BARC”) organisational audit
3 (“BNRC”) Committee (internal)
(“AIOB”)
Axiata’s Corporate
Governance Framework 3
Quality audit and
Cyber Security Axiata Board Digital inspections (internal &
Steering Committee Advisory Council external)

G ro u p Man age ment Team

G ro up
Group Sen ior M erger and Grou p G ro up
Dig itisation
Exe cutive Lead ers hip Acq u is ition Ta lent Tech n o lo gy
Steering
Coun ci l Team Cou ncil Cou ncil Co un cil
Co mmittee

Op erati ng Co m pan i es ’ Man age ment Team

O rga n i sation

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 61
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 62

Integ rated Annua l Repor t 2018

Board of Directors

Principle A:
Board Leadership and Effectiveness

Structural Changes to Board

Composition

The year 2018 and the early part of

2019 saw several changes to the Board
composition as follows:

• Appointment of Tengku Dato’ Sri Azmil

Zahruddin Raja Abdul Aziz as Non- TAN SRI GHAZZALI TAN SRI JAMALUDIN
Independent Non-Executive Director SHEIKH ABDUL KHALID IBRAHIM
(“NINED”) replacing Kenneth Shen on Chairman Managing Director/
12 January 2018 Independent Non-Executive Director President & Group Chief Executive Officer

• Retirement of Datuk Azzat Kamaludin Age Nationality Gender Age Nationality Gender
as Senior Independent Non-Executive 73 Malaysian Male 60 Malaysian Male
Director (“SINED”) on 23 May 2018
Length of Service Date of Appointment Length of Service Date of Appointment
11 years 24 March 2008 11 years 3 March 2008
• Appointment of Dr Lisa Lim Poh Lin as
Appointed as Chairman on
INED on 8 June 2018 1 November 2018

• Resignation of Tan Sri Datuk Wira

Azman Hj Mohktar as Chairman on
3 August 2018

• Appointment of Tan Sri Ghazzali Sheikh

Abdul Khalid as Interim Chairman on
23 August 2018

• Redesignation of Tan Sri Ghazzali

Sheikh Abdul Khalid as Chairman on
1 November 2018

• Appointment of David Lau Nai Pek as

SINED on 1 November 2018

• Appointment of Khoo Gaik Bee as DAVID LAU NAI PEK DATO’ MOHD IZZADDIN
INED on 1 January 2019
Senior Independent Non-Executive Director IDRIS
Independent Non-Executive Director
• Redesignation of Dato’ Mohd Izzaddin
Idris as INED on 27 March 2019
Age Nationality Gender Age Nationality Gender
66 Malaysian Male 56 Malaysian Male

GA
For complete details of the Profiles of Directors,
FS
please refer to pages 4 to 7. Length of Service Date of Appointment Length of Service Date of Appointment
11 years 23 April 2008 2 years 4 months 24 November 2016
 Integrated Annual Repor t 2018

Board of Directors

DATO DR NIK RAMLAH DR DAVID ROBERT DEAN DR MUHAMAD CHATIB

NIK MAHMOOD Independent Non-Executive Director BASRI
Independent Non-Executive Director Independent Non-Executive Director

Age Nationality Gender Age Nationality Gender Age Nationality Gender

63 Malaysian Female 60 British Male 53 Indonesian Male

Length of Service Date of Appointment Length of Service Date of Appointment Length of Service Date of Appointment
2 years 21 March 2017 1 year 3 months 11 December 2017 4 years 25 February 2015

TENGKU DATO’ SRI AZMIL DR LISA LIM POH LIN KHOO GAIK BEE
ZAHRUDDIN RAJA ABDUL AZIZ Independent Non-Executive Director Independent Non-Executive Director
Non-Independent Non-Executive Director
(Representative of Khazanah)

Age Nationality Gender Age Nationality Gender Age Nationality Gender

48 Malaysian Male 42 Malaysian Female 61 Malaysian Female

Length of Service Date of Appointment Length of Service Date of Appointment Length of Service Date of Appointment
1 year 3 months 12 January 2018 9 months 8 June 2018 3 months 1 January 2019

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 63
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 64

Integ rated Annua l Repor t 2018

Group Organisational Chart

The Board places great importance in

ensuring that Axiata has in place a strong
and cohesive Senior Leadership Team Managing Director/President &
(“SLT”) made up of capable individuals Group Chief Executive Officer
who are experts in their own respective
fields.
 
Appointment of top key positions in the
Group requires the recommendation of
the BNRC and approval of Axiata Board
of Directors. The members of the SLT Group Company
Group Internal Audit
comprise a healthy mix of Malaysians and Secretarial
Group Chief Internal Auditor
other nationalities to ensure that local Group Company Secretary
and regional knowledge and expertise
are balanced with global perspectives. 
 
In 2018 and early 2019, the SLT line up
saw the appointments of the Group Group Legal &
Group Corporate Group Human
Chief Corporate Officer, the Deputy Enterprise Group Technology
Office Resources
Risk Management Group Chief Technology
Group Chief Financial Officer and the Group Chief Corporate Group Chief Human
Group General Counsel Officer
Group Chief Internal Auditor. These Officer Resources Officer
and Risk Officer
appointments are of talent that were
serving in other capacities in the Axiata
Group and assumed roles on the SLT as
Corporate Executive
part of the Axiata Talent Management Group Talent Group Corporate Group Strategy
Vice President & Group Finance
Framework. Management Development & Marketing
Regional Chief Group Chief Financial
  Group Chief Talent Group Chief Corporate Group Chief Strategy &
Executive Officer, Officer
Officer Development Officer Marketing Officer
South Asia Operations

Information
Information
Security
Technology Group Financial Deputy Group Chief
Group Chief
Group Chief Controller Financial Officer
Information Security
Information Officer
Officer

GA For complete details of the Profile of Group SLT,

FS
please refer to pages 11 to 15
 Integ rated Annua l Repor t 2018

Group Senior Leadership Team

TAN SRI JAMALUDIN DR HANS WIJAYASURIYA VIVEK SOOD

IBRAHIM Corporate Executive Vice President Group Chief Financial Officer
Managing Director/ & Regional Chief Executive Officer,
President & Group Chief Executive Officer South Asia Operations

Age Nationality Gender Age Nationality Gender Age Nationality Gender

60 Malaysian Male 50 Sri Lankan Male 54 Indian Male

Years of Service at Axiata Date of Appointment to Years of Service at Axiata Date of Appointment to Years of Service at Axiata Date of Appointment to
11 years Current Position 25 years Current Position 2 years Current Position
3 March 2008 1 January 2017 3 April 2017

AZWAN KHAN DATIN SRI BADRUNNISA ASRI HASSAN SABRI

OSMAN KHAN MOHD YASIN KHAN Group Chief Corporate Officer
Deputy Group Chief Financial Group Chief Talent Officer
Officer

Age Nationality Gender Age Nationality Gender Age Nationality Gender

49 Malaysian Male 59 Malaysian Female 52 Malaysian Male

Years of Service at Axiata Date of Appointment to Current Years of Service at Axiata Date of Appointment to Years of Service at Axiata Date of Appointment to
14 years Position 11 years Current Position 3 years Current Position
1 November 2018 1 June 2011 1 September 2018

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 65
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 66

Integ rated Annua l Repor t 2018

Group Senior Leadership Team

HADI HELMI ZAINI SURYANI HUSSEIN DARKE M SANI DOMINIC P ARENA

SOORIA Group Company Secretary Group Chief Human Group Chief Strategy and
Resources Officer Marketing Officer
Group Chief Internal Auditor

Age Nationality Gender Age Nationality Gender Age Nationality Gender Age Nationality Gender
49 Malaysian Male 53 Malaysian Female 63 Singaporean Male 42 Australian Male

Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to
Axiata Current Position Axiata Current Position Axiata Current Position Axiata Current Position
22 years 15 October 2018 16 years 1 April 2008 7 years 1 June 2011 3 years 1 March 2016

ANNIS SHEIKH TAN GIM BOON ANTHONY RODRIGO YAP WAI YIP
MOHAMED Group General Counsel and Group Chief Information Officer Group Financial Controller
Group Chief Corporate Risk Officer
Development Officer

Age Nationality Gender Age Nationality Gender Age Nationality Gender Age Nationality Gender
47 Malaysian Male 46 Malaysian Male 51 Sri Lankan Male 62 Malaysian Male

Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to
Axiata Current Position Axiata Current Position Axiata Current Position Axiata Current Position
7 years 1 July 2011 15 years 14 April 2014 8 years 1 August 2017 11 years 1 November 2016
 Integ rated Annua l Repor t 2018

Operating Companies’ Organisational Chart

In 2018, Celcom welcomed a new CEO,

who was an internal talent.
 
This appointment, along with the three Managing Director/President &
Operating Companies’ (OpCos) CEOs Group Chief Executive Officer
promoted through internal ranks in 2017,
demonstrate orderly succession planning
undertaken in accordance with the Axiata
Talent Management Framework.
Corporate Executive Vice President
The succession plans are presented to & Regional Chief Executive Officer,
the Board at least twice a year. The plans South Asia Operations
include talent (both internal and identified
external talent) ready to take on senior
roles within different time frames and the
intervention required for key talent. The
succession planning process provides
Axiata a ready pool of talent to plan
ahead with and when there is insufficient
bench strength, to scour the market and
identify promising candidates in advance Dialog Axiata PLC
of the anticipated demand. Ncell Private Limited Celcom Axiata Berhad Smart Axiata Co., Ltd edotco Group Sdn. Bhd.
Sri Lanka
Nepal Malaysia Cambodia Malaysia
  Director/
Managing Director Chief Executive Officer Chief Executive Officer Chief Executive Officer
Group Chief Executive

Robi Axiata Limited Axiata Digital

PT XL Axiata Tbk
Bangladesh Services Sdn. Bhd.
Indonesia
Managing Director/ Malaysia
President Director
Chief Executive Officer Chief Executive Officer

GA For complete details of the Profile of Operating

FS
Companies’ Management Team, please refer to
pages 16 to 17

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 67
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 68

Integ rated Annua l Repor t 2018

Operating Companies’ Management Team

MOHAMAD IDHAM DIAN SISWARINI SUPUN WEERASINGHE THOMAS HUNDT

NAWAWI President Director Director/Group Chief Executive Chief Executive Officer
Chief Executive Officer PT XL Axiata Tbk Dialog Axiata PLC Smart Axiata Co., Ltd.
Celcom Axiata Berhad

Age Nationality Gender Age Nationality Gender Age Nationality Gender Age Nationality Gender
51 Malaysian Male 50 Indonesian Female 43 Sri Lankan Male 41 German Male

Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to
Axiata Current Position Axiata Current Position Axiata Current Position Axiata Current Position
6 years 1 September 2018 22 years 1 April 2015 19 years 1 January 2017 6 years 19 February 2013

SUREN J. MAHTAB UDDIN AHMED MOHD KHAIRIL SURESH SIDHU

AMARASEKERA Managing Director/ ABDULLAH Chief Executive Officer
Chief Executive Officer Chief Executive Officer edotco Group Sdn Bhd
Managing Director
Robi Axiata Limited Axiata Digital Services Sdn Bhd
Ncell Private Limited

Age Nationality Gender Age Nationality Gender Age Nationality Gender Age Nationality Gender
54 Sri Lankan Male 52 Bangladeshi Male 48 Malaysian Male 52 Malaysian Male

Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to Years of Service at Date of Appointment to
Axiata Current Position Axiata Current Position Axiata Current Position Axiata Current Position
2 years 1 July 2017 8 years 1 November 2016 7 years 1 January 2015 10 years 26 August 2014
 Integ rated Annua l Repor t 2018

Board Leadership

Duties & Responsibilities of the Board
The year 2018 saw the Board and Board Committee meetings clocking in a total of 162 hours
in the discharge of its key fiduciary duties and leadership functions and responsibilities. The
following sets out the total hours for the conduct of Board & Board Committee Meetings:
Total Hours for Board & Board Committee Meetings
Activities in 2018
• The Board occupied approximately 36% of its time providing the strategic direction for the
Company by guiding the SLT in developing the corporate strategy to be employed by Axiata
Group in pursuit of Axiata’s vision to be a New Generation Digital Champion by 2022.
• During the mid-year retreat in July 2018, the Board was updated on the Axiata 3.0 Triple Core
Transformation and the status of the Eight Needle-Moving Strategic Initiatives, which were
broadly on track.
• At the year-end retreat in November 2018, the Board deliberated on the need for key
adjustments in execution of the planned strategies in 2018/2019 with focus on Shifting Gear

106
Board
hours 11 hours 21 hours
in new businesses and convergence.
• The Board also deliberated on the Strategic and Annual Business Plan and Budget 2019 and
provided feedback and direction before subsequently approving the same.
(Including Board Retreats) BAC BNRC • The Board made several key decisions on matters pertaining to Mergers & Acquisitions (“M&A”)
during the year, an area of strategic focus for the Board. Three out of 13 Board meetings were

8 hours 6 hours 10 hours

special Board meetings convened on M&A matters. As a matter of good practice, post-mortem
reviews of completed M&A transactions would be carried out by the Board periodically.
• The Board oversaw the conduct of the Company’s business and execution of the approved
BRMC AIOB BARC business plan over the short, medium and long-term. 2018 Key Performance Indicators (“KPI”)
were set and headline KPIs were announced publicly. On a quarterly basis, achievements
The topics of discussion at the meetings are as follows: against KPIs were presented and monitored.
• Sustainability and stakeholder management were also topics that constantly cropped up in the
Board’s deliberations in 2018 as Axiata faced regulatory challenges in many of its footprints.
9% • In terms of the organisation, the Board approved the following proposals in response to
changes in the business and industry and in support of Axiata 3.0 Transformation.

15% 36% Organisation People

Strategy, M&A, Funding & AIOB • Nurturing a Modern, Agile & Digital • Top Management changes across the
(M.A.D.) organisation. Group.
Business Performance & Planning • Framework targeting functional • Board refresh and succession planning
superiority or best practice across main across the Axiata Group.
Human Capital Management & BNRC/BRMC functions covering:
- Digitisation
18% Internal Control, Risk Management & BAC - Analytics
22% - IT & network modernisation
Governance & BARC

Priorities for 2019

• With a clear vision to be the New Generation Digital Champion by 2022, the Board will continue
to monitor its execution over the short, medium and long-term.
• Shifting Gear agenda with short-term focus towards profitability and cash flows.
• Overseeing the execution of the cost optimisation and M.A.D. organisation initiatives.
• Execution of Board refresh and succession planning.

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 69
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 70

Integ rated Annua l Repor t 2018

Board Leadership

Code of Conduct and Ethics Directors’ Professional Development and Education

The Directors Code of Ethics adopted in 2011 were reviewed and replaced with a new
Board Code of Conduct and Ethics (“Code”) approved by the Board in February 2018.
Adoption of the new Code is to be in line with the practices in the MCCG 2017 and
ensures that the Board continues to shape the ethical culture through its leadership.
The provisions of the Code are aligned with the Employees Code of Conduct and the
corporate culture of uncompromising integrity and exceptional performance applicable
across the Group.
The Code is available online at https://www.axiata.com/files/upload/corporate/Board_
Code_of_Conduct_and_Ethics.pdf
Board Charter
Other than the Mandatory Accreditation Programme (“MAP”) prescribed by Bursa
Securities, all newly appointed Directors of Axiata will attend an in-house Axiata Group
induction programme. This induction programme helps newly appointed Directors of
Axiata familiarise themselves with the strategies and operations of the Group. The
programme includes site visits and meetings with senior management as appropriate,
to enable them to have a full understanding of the nature of the Group’s businesses,
current issues and challenges as well as the structure and management of the Group.
Newly appointed Directors who are not familiar with the telco industry will also undergo
a Telco Primer Programme.
Axiata has a dedicated budget for Board training and a set of guidelines on Board
Training Programmes. BNRC undertakes an assessment of the training needs of the
Board and each Director and reviews the same on half yearly basis.

The Board also approved revisions to the Board Charter (“Charter”) in February 2018. The training programmes attended by each of the Director in 2018 are listed on pages
The revisions took into account the gaps in the Charter in view of the provisions of 9 to 10 of the GAFS.
MCCG 2017, inter alia in the following areas:

• Separation of the positions of Chairman and President & GCEO. Observed by Axiata 2018 Directors’ Training Areas
from inception with roles of each position clearly defined and now stated as a clear
policy.
• Insertion of a specific provision relating to Company Secretary stating the requirement 39% Legal/Compliance/Corporate Governance
36%
for a qualified person to be appointed and defining his/her role as advisor to the Board
on governance matters to whom the Board shall have unlimited access. Axiata’s Group Digital Services/New Businesses/Technology
Company Secretary is a qualified advocate & solicitor and licensed by Suruhanjaya
Syarikat Malaysia (“SSM”) and hence qualified to act as a Company Secretary under Strategy/Industry Outlook
the CA 2016.
• Asserting the Board’s aim to appoint 30% women participation on the Board in line Others – Audit, Risk Management, Finance,
with the Government’s aspiration which target has been attained as of 1 January 2019. Sustainability & M&A
• Specifically stating the requirement that if the Board wishes to retain an INED who 16% 9%
exceeds the cumulative term limit of 9 years, he/she shall be redesignated as a NINED,
unless annual shareholders’ approval is sought for him/her to remain as INED providing
justifications.

The full extent of the Board’s responsibilities is available in the Board Charter at
https://www.axiata.com/files/upload/corporate/Board_Charter.pdf
 Integ rated Annua l Repor t 2018

Board Composition

Current composition of Axiata Board has the appropriate mix of diversity, skills, experience and capabilities:
Board Size and Composition

Axiata has in place a Board

Composition Framework which takes NINED/INED/ED & Gender Nationality/International Experience
into consideration, among others, the
complexity and geographical spread of
NINED 1 Foreign 2
the Group’s businesses.
INED 8 Local 8

i) Maximum of 10 Board members ED 1 International 8

(up to two Executive Directors Experience
(“EDs”). In recent discussions, the Male 7
Board indicated a possibility that
the Board composition may be Female 3
larger than 10 in view of the new
businesses and allowing a certain
duration for Board transition and
refresh;
Industry Experience Functional Experience

ii) Two NINEDs representing Khazanah Information 6

1 Corporate Finance
as the major shareholder; Technology
Telecommunications 6 Strategy/Entrepreneurship 6

iii) More than 50% of the Board to Finance, Banking & 6 M&A 5
comprise INEDs with various mix Investments
of skills, experience and diversity Public Services/ 4 Legal/Regulatory 1
including in terms of nationality Government Relations
and gender; and Internet/Media/ 2 Audit/Accounting/ 4
Entertainment/Digital Business Assurance
Services/Innovative Mobile/ Talent Management/ 5
Technology/Analytics Human Capital
iv) Up to three members with
geographical experience matching Others - Economics/Sustainability/ 7
Sales/Marketing/Corporate
Axiata’s footprint (Indonesia/ Governance/Capital Markets/
Indian sub-continent/international). Islamic Finance

The breadth of skill sets and experience of the Axiata Board is instrumental to guide Axiata through the next phase of its transformation journey.

Axiata has a clear and transparent process for the selection, nomination and appointment of suitable candidates to the Board of Axiata as described
below:

Evaluation of Meeting Final

Identify Gaps/ Identification of Recommend
Suitability of Shortlisted Deliberation
Vacancy Candidates to Board
Candidates Candidates by BNRC

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 71
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 72

Integ rated Annua l Repor t 2018

2018 Meeting Calendar

The overall calendar of meetings of the Board and Committees held in 2018 and attendance of the respective Directors are provided below:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

BOD • • • • # # # •
# • (Mid-Year • # • (2-day
Strategy business
Retreat) planning)

BAC # • # • # • # •
#

BNRC • • • # • # • # •
# # #
# #
#

BRMC • • •

AIOB • • •

BARC • • • •
•
•

• Scheduled Meeting
# Special Meeting

1
Appointed on 8 June 2018
Board (13) BAC (8) BNRC (15) BRMC (4) AIOB (3) BARC (6) 2
Appointed on 12 January 2018
3
Resigned on 3 August 2018
Tan Sri Ghazzali Sheikh Abdul Khalid 13/13 (100%) - 13/15 (87%) - - - 4
Retired on 23 May 2018
5
Resigned on 12 January 2018
**
Tan Sri Jamaludin Ibrahim 13/13 (100%) - - 4/4 (100%) 3/3 (100%) 6/6 (100%) Number of Board meetings
attended from appointment
**
Dato’ Mohd Izzaddin Idris 13/13 (100%) 4/4 (100%) - - 2/3 (67%) - Number of Board meetings
attended until retirement/
David Lau Nai Pek 13/13 (100%) 8/8 (100%) - 4/4 (100%) 3/3 (100%) 6/6 (100%) resignation

Dato Dr Nik Ramlah Nik Mahmood 13/13 (100%) - 15/15 (100%) 4/4 (100%) - -

Dr David Robert Dean 13/13 (100%) 8/8 (100%) - 4/4 (100%) 3/3 (100%) -

Dr Muhamad Chatib Basri 12/13 (92%) - - - - -

Dr Lisa Lim Poh Lin1* 8/8 (100%) - - - - -

Tengku Dato’ Sri Azmil Zahruddin Raja Abdul Aziz 2*

13/13 (100%) - 5/5 (100%) - 3/3 (100%) -

Tan Sri Datuk Wira Azman Hj. Mokhtar3** 7/7 (100%) - - - - -

Datuk Azzat Kamaludin4** 5/5 (100%) 4/4 (100%) 10/10 (100%) 1/2 (50%) - 6/6 (100%)

Kenneth Shen5 - - - - - -
 Integ rated Annua l Repor t 2018

Board Effectiveness

Board Effectiveness Evaluation (“BEE”)

The Board believes that an independent party will lend greater objectivity to the assessment
process of the Board. As such, continuing Axiata’s practice of appointing professional consultants
annually for this exercise, the BNRC appointed KPMG Management & Risk Consulting Sdn Bhd
(“KPMG”) as facilitator of its 2018 Board Effectiveness Evaluation (2018 BEE).
KPMG facilitated the 2018 BEE by conducting assessments and analyses on Axiata’s Board, Board
Committees and individual directors. This was undertaken through questionnaires and interviews
with individual directors as well as selected key management personnel. Assessment in respect of
Directors’ independence was also carried out in the 2018 BEE using the criteria prescribed under
the Main LR of Bursa Securities.
4: Succession Planning
The Board has consciously established a premeditated and timely succession plan to
generate progressive renewal of the Board. Additionally, as part of the broader succession
management, the BNRC plays a proactive role in bridging any void in regards to skill set
and gender diversity.
B. Improvements – Areas that require improvement were also identified in the BEE 2018 and
these includes and may be categorised as follows:

The specific assessments included an assessment of the Board and each Board member’s skill
sets and was structured along both self assessment and peer reviews extending also specifically 1: Boardroom configuration across the Group
to independent directors and the President & GCEO. In addition, the BEE 2018 also included an A suggestion was made for the Board to review its current philosophy on appointments
assessment of each of the Board’s committees. of Axiata’s representatives on OpCo Boards and Committees.

The findings and results of the 2018 BEE was tabled to the Board at its meeting on
27 March 2019.
2: Oversight of Operating Companies
A summary of the BEE 2018 results are categorised into the following segments: Interviews with both Directors and Senior Management shed light on the necessity for
heightened awareness and attentiveness towards Operating Companies nestled in frontier
A. Strengths - Strengths and numerous positive highlights were identified in the BEE 2018 and markets.
these includes and may be categorised as follows:

3: Strategic Deliberations
1: Board Room Commitment and Resilience Views garnered from the Directors revealed that there is a need for strategic deliberations
The Board of Axiata is seen as a collegial, fully-committed and resilient unit of professionals to be more catalytic.
that is “dedicated to the cause”.

4: Information Flow and Board Administration

Insights obtained from the assessment and interviews point towards improvements that
2: Rigour of Board Deliberation
can be made over time management of Board meetings, scheduling of Board meetings,
Board deliberations are conducted with due rigour and professionalism. Board deliberations
induction of new Directors and the facilitation of in-camera sessions.
are focused and discussions are often without the shackles of fear or censure.

The Board has taken note of these identified areas for improvement and would address them in
3: Working Relationship between the Board and the President & GCEO the appropriate manner.
The findings highlight that there is unanimity within the Board that the President & GCEO
possesses sound leadership and technical and social skills in acting as the bridge between
Management and Board.

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 73
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 74

Integ rated Annua l Repor t 2018

Board Effectiveness

Board Effectiveness Evaluation (“BEE”)

In respect of the directors standing for re-election, the BNRC took into consideration the self-peer ratings and other feedback on the areas evaluated.

Tan Sri Ghazzali Sheikh Abdul Khalid is acknowledged for his role as a patient and
effective, but fair mediator at Board deliberations. In addition, he fosters a democratic
boardroom allowing dissenting and alternative voices to be expressed without
censure while being able to balance micro and macro arguments. Notwithstanding his
long tenure on the Board, he continues to display objectivity and is able to effectively
probe senior management.
Tan Sri Jamaludin Ibrahim is regarded as an astute leader and a passionate individual
who is highly visionary. He has been described by fellow Board members as a leader
who works in a synergistic and engaging manner with the Board fostering a strong
sense of camaraderie amongst Board members. His ability to command the respect
of the Board is a product of his stature and vast experience in the telecommunications
industry.

The Board is of the view that Axiata is fortunate in having such a Chairman and The Board is of the view and recommends that he should remain as the Managing
recommends for him to continue to act as an INED. Director/President & GCEO and recommends his re-election.

David Lau Nai Pek is acknowledged as exhibiting strong professionalism and
objectivity as well as demonstrating active participation in boardroom and Axiata
affairs. He commands the respect of the boardroom and is responsive to matters
brought to his attention. His expertise in finance and accounting brings effectiveness
to his chairmanship of the Board Audit Committee and Board Risk Management
Committee. Despite his long length of service on the Board, he remains objective with
the ability to effectively probe senior management.
The Board is of the view and recommends he should remain as an INED.
Dato’ Mohd Izzaddin Idris is recognised for demonstrating active individual
participation in the boardroom and Axiata affairs. His experience as a former chief
executive officer of a large government linked company equips him with the ability to
make proactive contribution to boardroom deliberations and high level management
probing and scrutiny. He is also strongly acknowledged for his ability to avert blind
spots in the boardroom from a business management perspective.
The Board recommends his re-election as an INED.

The assessment in respect of Directors independence in 2018 BEE was carried out using the criteria prescribed under the Main LR of Bursa Securities. All Independent Directors assessed have declared
adherence to all the relevant regulatory stipulations in accordance with paragraph 1.01 and Practice Note 13 of the Main LR of Bursa Securities. Notwithstanding the long tenure of two of the Independent
Directors, namely Tan Sri Ghazzali Sheikh Abdul Khalid and David Lau Nai Pek, the said Directors were adjudged to demonstrate continued objectivity and professional skepticism.
 Integ rated Annua l Repor t 2018

Board Remuneration

Non-Executive Directors (“NED”)

As a regional company, the remuneration philosophy is to develop a remuneration structure that commensurates with the Directors’ responsibilities at both Board and Board Committee level and is sufficient
to attract, incentivise and retain quality Directors. The remuneration packages differentiate the Chairman and ordinary members of the Board and Board Committee to reflect the bigger role played by the
Chairman.

The following table outlines the remuneration structure for NEDs of the Group:
Monthly Fees1 (RM) Meeting Allowances2 (RM)
1.
In accordance with shareholders’
Remuneration approval, Axiata pays Board and
NEC3 NED NEC3 NED Board committees’ Directors’ fees
on a monthly basis
Board of Directors 30,000.00 20,000.00 3,000.00 2,000.00
2.
Meeting allowances are paid on a
BAC 4,000.00 2,000.00 3,000.00 2,000.00 per meeting basis,
notwithstanding any adjournment
BNRC 1,200.00 800.00 1,500.00 1,000.00 and number of days

3.
NEC refers to Non-Executive
Other Board Committees Nil Nil 1,500.00 1,000.00 Chairman

Benefits

Benefits such as annual overseas business development trips, leave passage, travel allowance, travel allowance for non-resident NEDs, equipment, telecommunication facilities, insurance and medical.

Executive Directors (“ED”)

The Company’s policy on remuneration for the ED is formulated to ensure that the level of remuneration is generally set to provide market competitiveness to attract, retain and motivate an ED of the highest
calibre to competently manage the Company.

The remuneration is therefore structured to link various components of the package with corporate and individual performance as well as Total Shareholder Returns (“TSR”). It also takes into account similar
packages at comparable companies (of similar size and complexity to Axiata locally; and in the same industry in the region), based on information prepared by independent consultants and survey data.

The current remuneration policy of the ED consists of basic salary, benefits-in-kind and EPF contributions, as a guaranteed component. On top of this, the ED is eligible for two types of performance-based
incentives which are the Short-Term Incentive Plan (“STIP”) linked to a particular financial year’s targets and the Long-Term Incentive Plan (“LTIP”) which is linked to a 3-year long-term target.

For the STIP, the performance of the ED is measured based on the achievements of his annual KPIs. These KPIs comprise not only quantitative targets, such as annual revenue, EBITDA, PATAMI or Return on
Invested Capital (“ROIC”) and relative performance of the OpCos, but also qualitative targets which include strategic milestones and initiatives that need to be achieved and implemented in a given year, on
areas such as strategy, innovation, business development, synergy, human capital management, financial management and societal development. The weightage of the qualitative and quantitative targets
may be adjusted to accommodate the Group’s aspirations.

For the LTIP, the performance of the ED is measured on the achievement of a combination of TSR and ROIC within the vesting period; TSR targets being set in comparison with other high-performing
companies on Bursa Securities.

GA
FS Complete details of remuneration of NEDs and ED for 2018 are provided on page 8 of GAFS

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 75
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 76

Integ rated Annua l Repor t 2018

Board Committees

Roles Activities in 2018 Priorities for 2019

Board Nomination Nomination Nomination Nomination
and Remuneration • Oversee the selection and assessment of • Considered the significant changes to the Board of Axiata in 2018 and • To re-evaluate execution of Board phased
Committee (“BNRC”) Directors and ensure that Board composition early 2019 involving the appointments of 3 new directors, the resignation retirement plan and Board refresh.
meets the needs of Axiata; of 2 directors and the retirement of a director and recommended the • Review of top Management succession
Members • Propose new nominees to the Board of phased retirement plan to be kept in abeyance in 2019. planning.
Dato Dr Nik Ramlah Nik Directors of Axiata and any Committee of the • Twice during the year reviewed reports on directors training including • Monitor follow-up actions based on 2018
Mahmood
Board; making recommendations thereof. BEE findings and decide on the approach
(Chairman) (INED)
• Facilitate and review Board induction and • Reviewed changes proposed in respect of the nomination of Axiata for 2019 BEE.
Tengku Dato’ Sri Azmil training programmes; nominee directors on OpCo Boards. • Other routine or new matters proposed
Zahruddin Raja Abdul Aziz
(NINED)
• Assess Directors on an ongoing basis; and • Reviewed and recommended the extension of employment contracts by Management/Board.
• Recommend or approve, as the case may be, of key personnel of Axiata Group.
Khoo Gaik Bee the key management of Axiata Group. • Discussed the findings of the 2017 BEE and follow-up actions and Remuneration
(INED)
approach for 2018 BEE. • Review and approve a revised
Remuneration • Recommended the appointment of Board Committee members and compensation scheme for senior
• Recommend to the Board the remuneration of other changes. management and other employees.
the EDs in all its forms, drawing from outside • Recommended the amalgamation of BNC and BRC into a single • Routine matters such as:
advice as necessary; committee, BNRC effective 1 January 2018. - Performance Bonus and Increment for
• Assist the Board in determining the policy and • Recommended the establishment and membership of a new Board employees;
structure for the remuneration of Directors and Committee, BRMC. - LTIP for Axiata and its subsidiaries;
Senior Management of Axiata Group; and • Succession Planning and Talent Management Review. - Proposed Headline KPIs for GCEO; and
• Administer the ‘Performance-Based Employee • Reviewed the suitability of the directors due for re-election at the - Proposed Company Bonus Payment
Share Option Scheme and Restricted Share 2018 AGM. and Increment and others.
Plan (“Axiata Share Scheme”) in accordance • Assessed and recommended the INEDs who have exceeded the nine-
with the Bye-Laws of the Axiata Share Scheme year cumulative term limit to continue serving as independent.
(“Bye-Laws”) as approved by shareholders of • Reviewed and recommended the appointments of Tengku Dato’
the Company. Sri Azmil Zahruddin Raja Abdul Aziz, Dr Lisa Lim Poh Lin and Khoo
Gaik Bee as Axiata Board members where the search for the women
directors involved the engagement of an external recruitment firm.

Remuneration
The BNRC considered and recommended to the Board the following
matters:
• Not to undertake a review of NED remuneration in the immediate term.
• Long-Term Incentive Plan (“LTIP”) for Axiata and Axiata Digital Services
Sdn Bhd.
• Revision of Group Performance Bonus Matrix.
• Long-Term Incentive Grant for edotco Group Sdn Bhd.
• GCEO KPI2017 - Performance Evaluation and Remuneration.
• Company Bonus Payment and Salary Review Budget.
• 2018 Restricted Share Plan Grant and Vesting.

Note:
The ToR of the BNRC is available online at https://www.axiata.com/files/upload/corporate/Terms_of_Reference_Board_Nomination_and_Remuneration_Committee.pdf

Board Committees
Axiata Digital
Business Investment
and Oversight Board
Committee (“AIOB”)
Members
Dato’ Mohd Izzaddin Idris
(Chairman) (INED)
David Lau Nai Pek (SINED)
Tan Sri Jamaludin Ibrahim
Dr David Robert Dean (INED)
Tengku Dato’ Sri Azmil
Zahruddin Raja Abdul Aziz
(NINED)
Dr Hans Wijayasuriya
Mohd Khairil Abdullah
Vivek Sood
Board Annual
Report Committee
(“BARC”)
Members
David Lau Nai Pek
(Chairman) (SINED)
Tan Sri Jamaludin Ibrahim
Dato’ Mohd Izzaddin Idris
(INED)
Our Business
Integ rated Annua l Repor t 2018
Roles Activities in 2018 Priorities for 2019
• Approve investments in digital business up The committee made key investment decisions relating to Digital • Focus on the discipline of tracking the
to USD20 million provided that the approved Businesses and monitors its performance within its Limits of Authority. performance of the business against
investment is within the budget approved by their original business case and to
Axiata Board. make appropriate decision and/or
• Perform the oversight function on investments recommendation in a timely manner.
made under the ambit of AIOB approval.
• Approve divestment of digital business up to
USD20 million provided it was an investment
previously approved by AIOB.
• Review and approve the content design, • To provide a holistic view of the Group’s businesses and how value is • In 2017, Axiata developed its inaugural
concept and structure of the annual report created, the Board has recommended the adoption and application of integrated annual report. Within the next
and other related reports. the globally recognised and best practice reporting framework of the three to four years, the Board targets to
• Review and approve the overall content of the International Integrated Reporting Council’s (“IIRC”) Integrated Report. apply 100% of the Integrated Reporting
annual report and ensure compliance with the • Initiated discussion on applying the IIRC’s Integrated Reporting framework and this remains the focus for
Main LR of Bursa Securities. framework as the framework in Axiata’s annual report to shareholders 2019.
• Review and recommend for the Board’s and stakeholders. • To improve on the integrated annual
approval of related statements in the annual • Engaged with consultants, professional bodies and stakeholders report reporting process and the quality
report as required by the Main LR of Bursa to develop a roadmap towards applying the IIRC framework for its of information.
Securities, some of which may require prior annual report,
review by the Board Audit Committee or other • Conducted reviews of Axiata’s inaugural integrated annual report.
Board Committee of Axiata.
• Review and recommend for the Board’s
approval additional disclosures to be made
in the annual report taking into account
the Company and Group’s position at any
particular time and set the best disclosure
framework to reflect the performance and
image of the Company which is vital to the
shareholders and stakeholders who are the
ultimate recipients of the annual report.
Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 77
 Our Business Statements and Analysis
Board Audit Committee
Principle B:
Effective Audit and
Risk Management
Board Audit Committee
(“BAC”)
Members
David Lau Nai Pek (Chairman) (SINED)
Dr David Robert Dean (INED)
Dato’ Mohd Izzaddin Idris (INED)
BAC currently comprises wholly
INEDs and all BAC Members are
financially literate, well above the level
needed for an Audit Committee. Their
appointments are made by the Board
on the recommendation of the BNRC
and in consultation with the BAC
Chairman.
Group Chief Internal Auditor (“GCIA”)
acts as the Secretary of the BAC and
meeting dates are synchronized to
coincide with the key dates within
the financial reporting and audit cycle
with ample time for a report to be
prepared for the Board, particularly on
irregularities and significant finding on
matters of concern.
Axiata’s internal audit function reports
directly to the BAC and the Internal
Audit (“IA”) Charter is also approved
by the BAC.
Note:
The ToR of the BAC is available online at https://www.axiata.com/files/upload/corporate/Terms_of_Reference_Board_Audit_Committee.pdf
Our Strategy The Value We Create
Roles
• Assist the Board in fulfilling its statutory and
fiduciary responsibilities.
• Review financial statements and financial
reporting process, system of internal
controls, audit process and process for
monitoring compliance with law and
regulations including Bursa Securities’
requirements and the Company’s Code of
Conduct.
Activities in 2018
• A Cyber Security Forum initiated by
the Cyber Security Steering Committee
(“CSSC”) was held on 18 July 2018
attended by OpCos’ BAC Chairmen and
Senior Management of Axiata and OpCos
to discuss the Cyber Strategy as well as
progress of improvement initiatives for 2018.
This includes the status of improvement
initiatives to address the critical issues
highlighted in the security review – Cyber
Security Posture Assessment (“CSPA”).
• Reviewed the set up for the fraud and
investigation function across the Group.
• The BAC Chairman visited PT XL Axiata Tbk
(“XL”) in Indonesia to review the challenges
faced by XL’s management in operating
in a challenging environment and XL’s
perspective on governance and controls.
• A total of 124 internal audit reviews were
completed across the Group.
• Reviewed the financial results quarterly,
half yearly and annually prior to tabling the
same to the Board for approval.
• Reviewed the potential impairment
exposure of major investments.
Our Performance Our Governance
Board Audit Committee
• Held private meetings with the external
auditors without the presence of management.
• Reviewed business control incidents and
identified cases of control weaknesses
including fraud for sharing of lessons learnt
within the Group to avoid similar incidents.
• Acknowledged and reviewed investigated
defalcation cases across the Group.
• Improved the process for review of the
accounting impact of M&A deals, particularly
where derivatives are employed including the
use and accounting for options.
• Increased the ongoing focus of potential
impact on financials arising from divestments,
in-country consolidation and M&A. In particular,
in 2018 the focus was the impairment of
Axiata’s investment in Idea following the
completion of the merger which resulted in
dilution of the Group’s stake from associate to
simple investment.
• Reviewed the Group foreign currency
exposure, the impact of currency translation
on Axiata Group’s financial statements, debt
level including restructuring where necessary
and dividend policy.
• Reviewed the progress and reporting of
cost savings under Axiata Group’s Cost
Optimisation project.
• Ensured the adoption of recently introduced
International Accounting standards across the
Group, such as MFRS 9 and MFRS 15.
• Reviewed the Purchase Price Allocation (PPA),
Goodwill and Capital Gain Tax (CGT) of Ncell
Private Limited in Nepal.
• Reviewed the accounting impact arising from
the sale of M1 Limited in Singapore.
Other Information 78
Integ rated Annua l Repor t 2018
Priorities for 2019
• Ensure adoption of recently introduced
International Financial Reporting Standards
(“IFRS”) and Malaysian Financial Reporting
Standards (“MFRS”) across the Group, such
as MFRS 16.
• Post mortem on major acquisitions to
learn from the past acquisitions in terms of
governance, risks, and controls.
• Review carrying value of assets as required
by IFRS and MFRS and in line with Axiata’s
Eight Needle-Moving Strategic Initiatives for
2019.
• Establish a dedicated Internal Audit Team
for Axiata Digital Services (ADS) Group to
strengthen the independent assessment
capability and capacity to better manage
the governance, risks and controls in view
of ADS businesses expanding rapidly.
• Review Cyber Security programmes and
related internal controls of the Group.
• Review Data Privacy programmes and
related controls.
• Continue to review the Group foreign
currency exposure, the impact of
currency translation on Axiata Group’s
financial statements, debt level including
restructuring where necessary and dividend
policy.
• Continue to review the progress and
reporting of cost savings under Axiata
Group’s Cost Optimisation project in line
with Axiata’s 8 Focus Areas For 2019.
• Review capex efficiency programme/
practices in line with Axiata’s 8 Focus Areas
for 2019.
• Agile audit: Encourage use of “analytics
based audit (ABA)” in internal audit works
across the Group to deliver a more efficient,
accurate, holistic and effective assessment
on internal controls risks.

Board Audit Committee
Review of the performance of the BAC
Review of the performance of the Board Committees
including the BAC forms part of the annual BEE. The
scope of coverage included BAC composition and
governance, meeting administration and conduct,
group synergy and reporting line, as well as oversight
of financial reporting process, internal controls and the
audit function.
From the 2018 BEE, it was found that the BAC continued
to maintain its performance by demonstrating rigour and
professional scepticism in discharging its responsibilities.
The BAC members were acknowledged to possess an
appropriate range of experience and qualifications,
including the appropriate financial literacy to meet the
objectives of the BAC in Axiata. The BAC also displayed
a commitment to competence, integrity and a climate
of trust. The BAC was also found to be able to benefit
from improvements in focus on corporate culture across
the Group and demonstrating greater leadership effort
in directing the digitising of audit procedures.
Our Business Statements and Analysis
Relationship with Auditors
2018 saw the continued consultation and dialogue
between BAC, IA and Finance and the external auditors.
These discussions are always held in a professional
manner with different views tabled and discussed
openly, and where the auditors are given access to all
information.
In 2019, the BAC and Group finance will look at improving
the process for the consolidation of OpCos results for
quarterly and annual reports, allowing increased time
for external auditors to do their audit in a timely and
professional manner.
Our Strategy The Value We Create Our Performance
Integ rated Annua l Repor t 2018
Whistleblowing Policy
The Group has a Whistleblower Policy which enables
employees to raise matters in an independent and
unbiased manner. As part of this Whistleblower Policy
and procedures, there is an anonymous ethics and
fraud email, under the administration of the GCIA, as a
mechanism for internal and external parties to channel
their complaints or to provide information in confidence
on fraud, corruption, dishonest practices or other similar
matters by employees of the Group. The objective of
such an arrangement is to encourage the reporting of
such matters in good faith, with the confidence that
employees or any parties making such reports will be
treated fairly, their identity remains anonymous and are
protected from reprisal.
Our Governance Other Information 79
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 80

Integ rated Annua l Repor t 2018

Internal Control & Risk Management

Board Risk Management Committee

Board Risk Management
Committee (“BRMC”)
Members
David Lau Nai Pek (Chairman) (SINED)
Dato Dr Nik Ramlah Nik Mahmood
(INED)
Tan Sri Jamaludin Ibrahim
Dr David Robert Dean (INED)
Dato’ Mohd Izzaddin Idris (INED)
Peter Chambers
BRMC was established effective
1 January 2018 after deliberating on the
Step-up 9.3 provision of MCCG 2017.
The Board recognised the advantage
of having a Board committee separate
from the audit committee to focus on
risks in the complex and ever changing
business landscape.
BRMC takes over from the BAC the
role of assisting the Board in evaluating
the adequacy of risk management
framework.
BRMC which comprises of a majority
of INEDs, has the advantage of also
having the President & GCEO as well
as a Board representative from a major
OpCo as members, thus providing a
platform for a more holistic and robust
discussion on risks across the Group.
Roles
Risk Management
• Review and recommend the risk
management methodologies, policies
(including framework) and risk appetite for
adoption throughout the Group.
• Review and assess the adequacy of
the governing policies, framework and
structures for managing risks as well as
the extent to which these are operating
effectively.
• Ensure adequate infrastructure, resources
and systems are in place for effective risk
management. This includes ensuring that
the staff responsible for implementing
risk management systems perform their
responsibilities independently of the risk-
taking activities.
• Review the management’s periodic reports
on risk management activities, risk exposure
and risk mitigating actions.
Business Continuity Management
• Ensure Axiata Group adopt sound and
effective Business Continuity Management
(“BCM”) policies, procedures and practises
to improve its resilience and preparedness
for any eventualities.
• Ensure a comprehensive BCM framework
which includes an appropriate and
workable Business Continuity Plan (“BCP”),
Disaster Recovery Plan (“DRP”) and crisis
management have been formulated,
implemented, tested and maintained by
Axiata Group.
• Ensure that the BCP and DRP are reviewed Priorities for 2019
and updated continuously to reflect changes
in the operating environment. • Drive alignment of Axiata Group and Opco’s
Risk profile to the organisation strategy
Other Responsibilities in ensuring the right and relevant risks are
• Ensure ongoing awareness programmes, appropriately managed.
communication, training and education on risk • Ensure cyber and data privacy risks
management, BCM and compliance. are appropriately managed through
• Provide advice to the Board on company effective monitoring at BRMC and CSSC
activities that involve risk. of Management initiatives and relevant
• Promote a healthy risk culture and watch for projects.
dysfunctional behaviour that could undermine • Ensure Axiata Group BCM programmes are
the effectiveness of the risk management executed and continually improved across
process (e.g. excessive risk-taking due to the Group.
misaligned key performance indicators and • Strengthen BRMC oversight and governance
remuneration schemes). function of risk management to enable the
• Consider other matters relating to risk effective discharge by the Axiata Board of
management as referred to by the Board of its responsibility in risk oversight.
Axiata or by BRMC by its own accord.
Activities in 2018
• The committee has been established effective
1 January 2018.
• 4 BRMC meetings were held in 2018 to discuss
the Group’s risk agenda.
• Among key discussions of the BRMC includes:
- Establishment of Axiata Group Risk Appetite
Statement.
- Axiata Group and Opcos key risks and the
relevant mitigation strategy.
- Cyber threat and risks faced by the Group in
protecting and safeguarding our customer’s
data privacy.
- Business Continuity Programme and its
maturity status across Axiata Opcos.

Axiata maintains a high level risk register and the same is reviewed and updated every quarter. This comprises risks specific to the divisional activities
of the business as well as more Group-wide risks affecting its long-term strategy and vision.

The Group has established the ERM framework as a standardised approach to rigorously identify, access, report and monitor risks facing the Group.
The framework, benchmarked against ISO 31000:2009, is adopted across the Group. Based on the ERM framework, a risk reporting structure has
been established to ensure prompt communication to BRMC and the Board.
Note:
The ToR of the BRMC is available online at https://www.axiata.com/files/upload/corporate/Terms_of_Reference_Board_Risk_Management_Committee.pdf

Cyber Security Steering Committee
Cyber Security Steering
Committee (“CSSC”)
Members
Peter Chambers (Chairman)
Khatijah Shah Mohamed
Kenneth Shen
The Cyber Security Steering
Committee (“CSSC”) is established
as a sub-committee of the BRMC
to assist the BRMC in focusing on
the implementation of the cyber
security initiatives in the Group and
ensuring a standardised and aligned
implementation is adopted across the
Group. This focused approach was
essential with the numerous cyber-
attacks and the level of sophistication
of these attacks experienced by many
organisations across the globe.
Our Business Statements and Analysis
Roles
The CSSC is authorised by the BRMC to:
• Review, challenge and propose
recommendations on any of the proposed
cyber security initiatives including
recommendation of new initiatives.
• Have full and unrestricted access to any of
the Axiata Group’s information, records,
properties and personnel.
• Obtain external independent professional
advice where necessary.
• Escalate issues to the BRMC for immediate
action and with approval from the BRMC
Chairman, the CSSC can change the Cyber
Security priorities accordingly.
Responsibilities
Review the proposed Global Internal Audit
Plans in respect of cyber security audit across
the Group and make recommendations to the
BAC.
Oversight of the Chief Information Security
Officer (CISO) Function whereby the CISO
shall report to the CSSC on matters of cyber
security.
Our Strategy The Value We Create
Integ rated Annua l Repor t 2018
Board Risk Management Committee
The CSSC shall: Priorities for 2019
• Oversee the implementation of the Cyber
Security Objectives. • Review existing Operating Model to improve
• Improve the Cyber Security maturity across synergy, cost, risk profile and reduce
the group and is benchmarked against other duplication.
telecoms and leading organisation’s best • Increase cyber awareness, focus on Insider
practices. threats and Third-Party risk.
• Be advised on the Cyber risk and programme • Double our efforts on improving
delivery issue and the actions taken by the foundational/hygiene controls.
CISO to resolve them. • Test and improve our crisis management
• Monitor the progress and quality of the Cyber process.
Security programme and provide assurance to • Continue to build our Detection and
the BRMC. Response capabilities.
Activities in 2018
• Implemented an Internationally recognised
National Institute of Standards and Technology
(NIST) Cybersecurity Framework across the
Group.
• Implemented a programme to ensure all critical
assets are compliant to a Minimum Baseline
Security Standard.
• Conducted a Group-wide Red Team cyber
assessment exercise and reported to the
Axiata Board with priority actions to improve
Cyber resilience.
• Implemented a Bug Bounty programme to
identify and remediate software vulnerabilities/
bugs on our web and mobile channels.
• Implemented a Group Security Operations
Centre (“GSOC”) that provides real time
visibility of cyber-attacks for all our OpCos to
a single world class platform which provides
real-time visibility of cyber-attacks.
Our Performance Our Governance Other Information 81
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 82

Integ rated Annua l Repor t 2018

Communication with Shareholders and Investors

Principle C: Axiata uses a number of formal channels to account to shareholders and stakeholders
Investor Relations
Integrity in Corporate particularly:
Reporting and Meaningful Conferences, non-deal roadshows (“NDR”),
Relationship with IAR, Sustainability large group meetings and one-on-one
Stakeholders Report, GAFS and meetings
Notice of AGM Announcements to
The Board acknowledges the Website/Mobile Apps/ Bursa Securities 24 January Invest Malaysia
importance of effective communication Direct Shareholder
Print at Request/Press Maybank & Bursa Malaysia,
channels between the Board, Communication &
Advertisement Kuala Lumpur
stakeholders, institutional investors Engagement
and the investing public at large to 1 - 5 March London NDR
provide a clear and complete picture Website Updates UBS
of the Group’s performance and Annual General Meeting on all corporate 12 - 16 March Axiata OpCos Reverse
position as much as possible. The communication NDR
Group is fully committed in maintaining Maybank
high standards in the dissemination • Primary engagement platform between the Board and the shareholders of the company
20 – 21 March 21st Annual Asian
of relevant and material information • 28 days’ notice was given for the AGM held on 23 May 2018 Investment Conference
on the development of the Group in • Accessible venue at Connexion@Nexus Credit Suisse, Hong Kong
its commitment to maintain effective, • Attended by all Board members
comprehensive, timely and continuous • Business presentation by the Managing Director/President & GCEO and active 6 – 7 June Investment Forum Asia
disclosure. There has also been strong engagement during Q&A session 2018
emphasis on the importance of • Electronic poll voting on all resolutions and immediate announcement of results Nomura, Singapore
timely and equitable dissemination of
information. Disclosures of corporate 10 – 11 Investors’ Forum 2018
Regional Media Media Interviews on September CLSA, Hong Kong
proposals and/or financial results are Summit Corporate Developments
made not only in compliance with the 17 – 18 London NDR
Main LR of Bursa Securities but also September CLSA
include additional items through media Media Release on Social Media reach and
releases and are done on a voluntary Financial Results and Communication via engagement on all key 26 November Analyst & Investor Day
basis. Corporate Developments Mass Media channels Kuala Lumpur

30 November Singapore NDR

Press Conference on Targeted media BofAML
Financial Results and engagement and
Corporate Developments networking 4 – 6 December USA NDR
HSBC

Analyst & Analysts/

Investor Day Investor Meetings

Communication
Conference Calls on
to Analysts and Investor Relations
Financial Results and
Investors Website
Corporate Development
IAR For complete details of our Stakeholder
Engagement, please refer to page 23
Conferences/Non-Deal 29 Equity Research
Roadshows coverage
 Integ rated Annua l Repor t 2018

Group Directory
Axiata Group Berhad Celcom Axiata Berhad PT XL Axiata Tbk.
Corporate Headquarters @celcom XL Axiata Tower
Axiata Tower No 6 Persiaran Barat Jl. H.R. Rasuna Said X5
9 Jalan Stesen Sentral 5 Seksyen 52 Kav. 11-12 Kuningan Timur
Kuala Lumpur Sentral 46200, Petaling Jaya Setiabudi Jakarta Selatan 12950
50470 Kuala Lumpur Selangor Darul Ehsan Tel : +62 21 5761881
Malaysia Malaysia Fax : +62 21 5761880
Tel : +603 2263 8888 Tel : +603 7200 2222 Website : www.xl.co.id
Website : www.axiata.com Website : www.celcom.com.my

Dialog Axiata PLC Robi Axiata Limited Smart Axiata Co., Ltd.
No 475 Union Place 53 South Gulshan South Avenue 464A Monivong Blvd
Colombo 02 Gulshan-1 Sangkat Tonle Bassac
Sri Lanka Dhaka-1212 Khan Chamkarmorn
Tel : +94 777 678 700 Bangladesh 12301 Phnom Penh
Website : www.dialog.lk Tel : +88 02 9887146 52 Kingdom of Cambodia
Website : www.robi.com.bd Tel : +855 10 201 000
Website : www.smart.com.kh

Ncell Private Limited Axiata Digital Services Sdn Bhd Axiata Digital eCode Sdn Bhd
Lalitpur District Level 32 Axiata Tower Level 29 Axiata Tower
Lalitpur Metropolitan City 9 Jalan Stesen Sentral 5 9 Jalan Stesen Sentral 5
Ward No 4 Kuala Lumpur Sentral Kuala Lumpur Sentral
Nakkhu, Nepal 50470 Kuala Lumpur 50470 Kuala Lumpur
Tel : +977 9805554444 Malaysia Malaysia
Website : www.ncell.axiata.com Tel : +603 2260 9400 Tel : +603 2260 9400
Website : www.axiatadigital.com Website : www.myboost.com.my

Axiata Digital Advertising Sdn Bhd Apigate Sdn Bhd edotco Group Sdn Bhd
Level 32 Axiata Tower Level 29 Axiata Tower Level 30 Axiata Tower
9 Jalan Stesen Sentral 5 9 Jalan Stesen Sentral 5 9 Jalan Stesen Sentral 5
Kuala Lumpur Sentral Kuala Lumpur Sentral Kuala Lumpur Sentral
50470 Kuala Lumpur 50470 Kuala Lumpur 50470 Kuala Lumpur
Malaysia Malaysia Malaysia
Tel : +603 2260 9400 Tel : +603 2260 9400 Tel : +603 2262 1388
Website : ada-asia.com Website : www.apigate.com Website : www.edotcogroup.com

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 83
 Other
Information
 Integ rated Annua l Repor t 2018

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT THE TWENTY-SEVENTH ANNUAL GENERAL MEETING OF AXIATA AS SPECIAL BUSINESS:
GROUP BERHAD (“AXIATA” OR “COMPANY”) WILL BE HELD AT NEXUS BALLROOM 2 & 3, LEVEL
3A, CONNEXION@NEXUS, NO. 7 JALAN KERINCHI, BANGSAR SOUTH CITY, 59200 KUALA LUMPUR, 7. To approve the following Directors, each of whom has served as an Independent Non-Executive Director for
MALAYSIA ON WEDNESDAY, 29 MAY 2019 AT 10.00 A.M. FOR THE FOLLOWING PURPOSES: a cumulative term of more than nine years, to continue to act as Independent Non-Executive Directors:

AS ORDINARY BUSINESS:
1. To receive the Audited Financial Statements for the financial year ended 31 December 2018 together with the
Report of the Directors and the Auditors thereon.
8. PROPOSED SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A
2. To re-elect the following Directors, each of whom retires by rotation pursuant to Clause 104 of the Constitution
of the Company (“Constitution”) and being eligible, offers himself for re-election:
i) Tan Sri Ghazzali Sheikh Abdul Khalid (Ordinary Resolution 1)
ii) Tan Sri Jamaludin Ibrahim (Ordinary Resolution 2)
ii) Dato’ Mohd Izzaddin Idris (Ordinary Resolution 3)
3. To re-elect the following Directors, each of whom retires pursuant to Clause 110 (ii) of the Constitution and
being eligible, offers herself for re-election:
i) Dr Lisa Lim Poh Lin (Ordinary Resolution 4)
ii) Khoo Gaik Bee (Ordinary Resolution 5)
4. To approve the following payment by the Company:
i) Tan Sri Ghazzali Sheikh Abdul Khalid (Ordinary Resolution 9)
ii) David Lau Nai Pek (Ordinary Resolution 10)
REVENUE OR TRADING NATURE
“THAT, in accordance with paragraph 10.09 of the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad (Bursa Securities) (Main LR), approval be and is hereby given for Axiata and/or its
subsidiaries to enter into recurrent related party transactions of a revenue or trading nature, as set out in
‘Appendix I’ of the Circular to Shareholders dated 30 April 2019 (Circular) which is made available together with
the Company’s Integrated Annual Report 2018 at https://axiata.com/investors/agm.html which are necessary
for the day-to-day operations in the ordinary course of the business of Axiata and/or its subsidiaries on terms
not more favourable to the related parties than those generally available to the public and are not detrimental
to the minority shareholders of Axiata;
THAT such approval will continue to be in force and effect until:

a) Directors’ fees with effect from the 27th Annual General Meeting until the next Annual General Meeting: i) The conclusion of the next Annual General Meeting at which time the authority will lapse, unless the
authority is renewed by a resolution passed at such general meeting;
Non-Executive Chairman Non-Executive Director
ii) The expiration of the period within which the next Annual General Meeting is required to be held under
(“NEC”)/per month (RM) (“NED”)/per month (RM)
Section 340(2) of the Companies Act 2016 (but must not extend to such extension as may be allowed
i) Directors’ fees 30,000.00 20,000.00 pursuant to Section 340(4) of the Companies Act 2016); or
ii) Directors’ fees of the Board Audit 4,000.00 2,000.00
Committee iii) Revoked or varied by resolution passed by the shareholders in general meeting,

iii) Directors’ fees of the Board Nomination 1,200.00 800.00 whichever is earlier;
and Remuneration Committee
AND THAT the Directors be and are hereby authorised to complete and do all such acts, deeds and things
(each of the foregoing payments being exclusive of the others). (including without limitation, to execute such documents under the common seal in accordance with the
provisions of the Constitution, as may be required) to give effect to the aforesaid shareholders’ mandate and
b) Benefits payable to NEC and NEDs from the 27th Annual General Meeting until the next Annual General
transactions contemplated under this resolution.” (Ordinary Resolution 11)
Meeting. (Ordinary Resolution 6)

5. To approve the payment of fees and benefits payable by the subsidiaries to the NEDs of the Company from
the 27th Annual General Meeting until the next Annual General Meeting. (Ordinary Resolution 7)

6. To re-appoint PricewaterhouseCoopers PLT having consented to act as the Auditors of the Company
for the financial year ending 31 December 2019 and to authorise the Directors to fix their remuneration.
(Ordinary Resolution 8)

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 85
 Our Business Statements and Analysis Our Strategy The Value We Create
Notice of Annual General Meeting
9. PROPOSED RENEWAL OF THE AUTHORITY FOR DIRECTORS TO ALLOT AND ISSUE NEW ORDINARY
SHARES IN THE COMPANY (AXIATA SHARES) IN RELATION TO THE DIVIDEND REINVESTMENT
SCHEME THAT PROVIDES THE SHAREHOLDERS OF THE COMPANY THE OPTION TO ELECT TO
REINVEST THEIR CASH DIVIDEND ENTITLEMENTS IN NEW AXIATA SHARES (DRS)
“THAT pursuant to the DRS approved by the shareholders at the Annual General Meeting held on 28 May 2014
and subject to the approval of the relevant authority (if any), approval be and is hereby given to the Company
to allot and issue such number of new Axiata Shares pursuant to the DRS until the conclusion of the next
Annual General Meeting, upon such terms and conditions and to such persons as the Directors may, in their
absolute discretion, deem fit and in the best interest of the Company PROVIDED THAT the issue price of the
said new Axiata Shares shall be fixed by the Directors at not more than 10% discount to the adjusted 5-day
volume weighted average market price (VWAMP) of Axiata Shares immediately prior to the price-fixing date,
of which the VWAMP shall be adjusted ex-dividend before applying the aforementioned discount in fixing the
issue price;
AND THAT the Directors and the Secretary be and are hereby authorised to do all such acts and enter into all
such transactions, arrangements and documents as may be necessary or expedient in order to give full effect
to the DRS with full power to assent to any conditions, modifications, variations and/or amendments (if any)
as may be imposed or agreed to by any relevant authorities or consequent upon the implementation of the
said conditions, modifications, variations and/or amendments, as they, in their absolute discretion, deem fit
and in the best interest of the Company.” (Ordinary Resolution 12)
10. AUTHORITY UNDER SECTIONS 75 AND 76 OF THE COMPANIES ACT 2016 FOR DIRECTORS TO ALLOT
AND ISSUE SHARES
“THAT pursuant to Sections 75 and 76 of the Companies Act 2016, full authority be and is hereby given to the
Directors of the Company to allot and issue shares in the Company at any time until the conclusion of the next
Annual General Meeting, and upon such terms and conditions, and for such purposes, as the Directors may,
in their absolute discretion, deem fit including in pursuance of offers, agreements or options to be made or
granted by the Directors while this approval is in force and the Directors be and are hereby further authorised
to make or grant offers, agreements or options in respect of the shares of the Company including those
which would or might require shares in the Company to be issued after the expiration of the approval hereof,
provided that the aggregate number of shares to be issued does not exceed 10% of the issued shares of the
Company for the time being and that the Directors be and are hereby empowered to obtain the approval
for the listing and quotation for the additional shares so issued on Bursa Securities, subject always to the
Companies Act 2016, the Main LR and the approvals of all relevant regulatory authorities, if required, being
obtained.” (Ordinary Resolution 13)
Our Performance Our Governance Other Information 86
Integ rated Annua l Repor t 2018
11. To transact any other ordinary business for which due notice has been given in accordance with the
Constitution and the Companies Act 2016.
FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a Member who shall be entitled
to attend, speak and vote at this 27th Annual General Meeting, the Company shall be requesting Bursa Malaysia
Depository Sdn Bhd in accordance with Clause 75 of the Constitution and Section 34(1) of the Securities Industry
(Central Depositories) Act 1991 (SICDA) to issue a General Meeting Record of Depositors as at 16 May 2019. Only
a depositor whose name appears in the General Meeting Record of Depositors as at 16 May 2019 shall be entitled
to attend the said meeting or appoint proxies to attend, speak and vote on his/her behalf.
By Order of the Board
Suryani Hussein (LS0009277)
Group Company Secretary
Kuala Lumpur, Malaysia
30 April 2019
NOTES:
Proxy and/or Authorised Representative
1. A Member entitled to attend and vote at the above Meeting is entitled to appoint a proxy without any restriction
to the qualification of the proxy to attend and vote in his/her stead.
2. The Company shall be entitled to reject any instrument of proxy lodged if the member is not shown to have any
shares entered against his name in the Register and/or subject to Clause 41 of the Constitution in relation to the
Record of Depositors made available to the Company.
3. A Member entitled to attend and vote at the Meeting is not entitled to appoint more than two proxies to attend
and vote on his/her behalf. Where a Member appoints two proxies, the appointment shall be invalid unless the
percentage of the shareholding to be represented by each proxy is specified.
4. Where a Member is an authorised nominee as defined under the SICDA, it may appoint at least one proxy but
not more than two proxies in respect of each Securities Account it holds with ordinary shares of the Company
standing to the credit of the said Securities Account.
Every appointment submitted by an authorised nominee as defined under the SICDA, must specify the CDS
Account Number.
 Integ rated Annua l Repor t 2018

Notice of Annual General Meeting

5. Where a member of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Clause 110 (ii) provides that any Director appointed during the year shall hold office only until the next following
Company for multiple beneficial owners in respect of each securities account (omnibus account), there is no Annual General Meeting and shall then be eligible for re-election. Dr Lisa Lim Poh Lin and Khoo Gaik Bee who
limit to the number of proxies which the Exempt Authorised Nominee may appoint in respect of each omnibus were appointed on 8 June 2018 and 1 January 2019 respectively are standing for re-election as Directors of the
account it holds. Company.

6. The instrument appointing a proxy shall:
a) in the case of an individual, be signed by the appointer or by his/her attorney; or
b) in the case of a corporation, be either under its common seal or signed by its attorney or an officer on
behalf of the corporation.
The Board has recommended the re-election of the abovementioned Directors. Details of the assessment of the
Directors seeking re-election and re-appointment , save for Dr Lisa Lim Poh Lin and Khoo Gaik Bee, are provided
in the Corporate Governance Overview on page 74 of the Integrated Annual Report 2018. Their profiles are set
out in the Profile of Directors’ section of the Governance & Audited Financial statement 2018 (“GAFS”) from
pages 4 to 7.

If the instrument appointing a proxy is signed by an officer on behalf of the corporation, it should be accompanied Any Director referred to in Ordinary Resolution 1 to 5 who is a shareholder of the Company will abstain from
by a statement reading “signed as authorised officer under an Authorisation Document, which is still in force, voting on the resolution in respect of his/her re-election at the 27th Annual General Meeting,
no notice of revocation has been received”. If the instrument appointing a proxy is signed by the attorney duly
appointed under a power of attorney, it should be accompanied by a statement reading “signed under a power Directors’ Fees and Benefits Payable by the Company
of attorney, which is still in force, no notice of revocation has been received”.
12. a) Clause 117(i) of the Constitution provides that the fees of Director and any benefits payable to
Any alteration to the instrument appointing a proxy must be initialed. the Directors shall be subject to annual shareholder approval at a meeting of members. Therefore,
shareholders’ approval is required for the payment of Directors’ remuneration.
7. A corporation which is a Member, may by resolution of its Directors or other governing body authorise
such person as it thinks fit to act as its representative at the Meeting, in accordance with Clause 101 of the Shareholders’ approval on the Directors’ fees for Board and Board Committees and benefits payable
Constitution. Pursuant to Section 333 (3) of the Companies Act 2016, if the corporation authorizes more than was obtained at the 26th Annual General Meeting held on 23 May 2018 and there is no revision to any
one person, every one of the representative is entitled to exercise the same powers on behalf of the corporation of the fees. Details of Directors’ fees and benefits paid to NEDs are set-out on page 8 of the GAFS.
as the corporation could exercise if every one of the representative was an individual member of the Company.
However, if more than one of the representatives do not purport to exercise the power in the same way, the b) Approval of the shareholders is sought pursuant to Section 230(1) of the Companies Act 2016,
power is treated as not exercised. stipulating amongst others, that the fees and benefits payable to the directors of a listed company
shall be approved at a general meeting. The benefits payable to the NEDs shall comprise the
8. The instrument appointing a proxy together with the duly registered power of attorney referred to in Note 6 following:
above, if any, must be deposited at the office of the Share Registrar, Tricor Investor & Issuing House Services
Sdn Bhd (“Tricor”), Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan i) Meeting Allowance
Kerinchi, 59200 Kuala Lumpur, Malaysia or its Customer Service Centre at Unit G-3, Ground Floor, Vertical
Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia no later than 28 May
2019 at 10.00 a.m. The proxy appointment may also be lodged electronically via Tricor’s TIIH Online website at: Board/Board Committees Meeting Allowance (RM)
https://tiih.online no later than 28 May 2019 at 10.00 a.m. For further information on the electronic lodgment of NEC NED
Proxy Form, kindly refer to the Annexure of the Administrative Notes.
Board of Directors 3,000.00 2,000.00
9. Pursuant to Paragraph 8.29A of the Main LR, all resolutions set out in the Notice of AGM will be put to vote on Board Audit Committee 3,000.00 2,000.00
poll.
Board Nomination and Remuneration Committee 1,500.00 1,000.00
Audited Financial Statements Other Board Committees 1,500.00 1,000.00

10. The Audited Financial Statements for financial year ended 31 December 2018 (FY18) under Agenda 1 are laid For guidance on estimated amount, the amount of Meeting Allowances paid to NEDs of Axiata
before the shareholders pursuant to the provisions of Section 340(1) of the Companies Act 2016 for discussion for Board and Board Committee meetings held in FY18 are disclosed on page 8 of the GAFS.
only and will not be put forward for voting.
ii) Benefits such as annual overseas business development trips, leave passage, travel allowance,
Re-election of Directors who retire pursuant to Clauses 104 and 110 (ii) of the Constitution travel allowance for non-resident NEDs, equipment, telecommunication facilities, insurance and
medical.
11. Clause 104 provides that one-third of the Directors of the Company for the time being shall retire by rotation at
an Annual General Meeting of the Company. All the Directors shall retire from office once at least in each three
c) Any NEDs who are shareholders of the Company will abstain from voting on Ordinary Resolution 6
years but shall be eligible for re-election. Tan Sri Ghazzali Sheikh Abdul Khalid, Tan Sri Jamaludin Ibrahim and
regarding the Directors’ Fees and Benefits Payable by the Company.
Dato’ Mohd Izzaddin Idris are standing for re-election as Directors and being eligible, have offered themselves
for re-election.

Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 87
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 88

Integ rated Annua l Repor t 2018

Notice of Annual General Meeting

Directors’ Fees and Benefits Payable by the Subsidiaries

13. a) Approval of the shareholders is sought to comply with the provisions of Section 230(1) of the Companies Act 2016, stipulating amongst others, that the fees and benefits payable to the directors of a listed company by
the subsidiaries shall be approved at a general meeting. Ultimately, any decision in respect of the Directors’ remuneration of the following subsidiaries will be made by the shareholders of these companies in accordance
with the laws applicable in their respective jurisdiction.

i) Fees and Meeting Allowance

Meeting Attendance per Meeting (MYR unless indicated otherwise)

Company Designation Monthly Fees (MYR Board of BAC BNC/BRC Board Dispute Other Board
unless indicated Directors Resolution Committees
otherwise) Committee
Celcom NEC 12,000.00 2,000.00 2,000.00 1,000.00 750.00 500.00
(BRC Only)
NED 8,000.00 1,500.00 1,500.00 750.00 500.00 350.00
(BRC Only)
XL President IDR120M IDR5M - - - -
BOC, Member IDR84-110M IDR5M - - - -
BAC, Member IDR94M - - - - -
Dialog NEC USD1,463.00 USD975.00 USD975.00 USD490.00 - USD490.00
(AGM: USD650.00) (BNC & BRC)
NED USD1,125.00 USD750.00 USD750.00 USD375.00 - USD375.00
(AGM: USD500.00) (BNC & BRC)
Robi NEC USD2,500.00 USD300.00 USD300.00 USD150.00 - -
(BRC Only)
NED USD2,000.00 USD200.00 USD200.00 USD100.00 - -
(BRC Only)
Ncell NEC USD2,500.00 USD300.00 USD300.00 - - -
NED USD2,000.00 USD200.00 USD200.00 - - -
edotco NEC 8,000.00 1,000.00 1,000.00 750.00 - 350.00
NED 6,000.00 700.00 700.00 500.00 - 250.00
Smart NEC USD1,200.00 USD300.00 USD300.00 USD150.00 - -
NED USD1,200.00 USD300.00 USD300.00 USD150.00 - -

ii) Other customary benefits not available and/or provided by Axiata prevalent in these respective jurisdiction

Notes:

For reference on the directorship of Axiata NEDs on the Board of subsidiaries and amount paid for the FY18 which provides guidance on the estimated amount, please refer to page 8 of the GAFS.

Payment of fees and benefits in notes 12 and 13 will be made by the Company and the respective subsidiary on a monthly basis and/or as and when incurred.

iii) Any NEDs who are shareholders of the Company will abstain from voting on Ordinary Resolution 7 regarding the Directors’ Fees and Benefits Payable by the Subsidiaries.

Notice of Annual General Meeting
Re-appointment of Auditors
14. The Company and the Board Audit Committee (BAC) has an External Auditors Evaluation and Rotation
Assessment to assess the performance of external auditors. This assessment is undertaken when deciding on
the re-appointment of external auditors and takes into account the following criteria:
1. Independence
2. Scope of audit
3. Audit fee
4. Expertise and experience
5. Methodologies, techniques and audit facilities
6. Performance based on the annual audit scope and planning
The BAC and the Board had, at its meetings held on 20 and 21 February 2019 respectively, evaluated the
re-appointment of PricewaterhouseCoopers PLT (PWC) as Auditors of the Company, in the course of which
the criteria of assessment were duly considered. The BAC and the Board were satisfied with the performance
of PWC based on the criteria of assessment and that the requirements for consideration as prescribed under
Paragraph 15.21 of the Main LR are duly met. A recommendation is made for the appointment of PWC as
external auditors of the Company for the financial year ending 31 December 2019.
EXPLANATORY NOTES - SPECIAL BUSINESS
Approval for Directors to Continue as Independent Non–Executive Directors
Tan Sri Ghazzali Sheikh Abdul Khalid and David Lau Nai Pek have reached cumulative 9-year independence
limit in 2017. In accordance with the Malaysian Code on Corporate Governance 2017, the Board through
the BNRC has undertaken an assessment on the abovementioned INEDs and has recommended for these
Directors to continue to serve as Independent Directors. Details of their assessment are provided on page
74 of the Integrated Annual Report 2018.
Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or
Trading Nature
The proposed Ordinary Resolution 11, if approved, will enable the Company and/or its subsidiaries to enter
into recurrent related party transactions with related parties in the ordinary course of business which are
necessary for the Group’s day-to-day operations and are on terms not more favourable to the related
parties than those generally available to the public and shall lapse at the conclusion of the next Annual
General Meeting unless authority for its renewal is obtained from shareholders of the Company at such
general meeting. Detailed information on the Proposed Shareholders’ Mandate is set out in the Circular.
Our Business Statements and Analysis Our Strategy The Value We Create
Integ rated Annua l Repor t 2018
Proposed Renewal of Authority for Directors to Allot and Issue New Axiata Shares In relation to DRS
The shareholders had, at the 26th Annual General Meeting held on 23 May 2018, approved the renewal of
the authority for the Directors to allot and issue new Axiata Shares in relation to DRS and such authority will
expire at the conclusion of this Annual General Meeting. The DRS provided shareholders with the opportunity
to reinvest the whole or part of cash dividends in new Axiata Shares in lieu of receiving cash subject to the
determination by the Directors, shareholders may be offered an option to reinvest such dividends in new
Axiata Shares and where applicable, the portion of such dividends to which the option to reinvest applies.
This proposed Ordinary Resolution 12, if approved, will renew the Directors’ authority to issue new Axiata
Shares in respect of the Dividend and subsequent dividends to be declared, if any, under the DRS, until the
conclusion of the next Annual General Meeting. A renewal of this authority will be sought at subsequent
Annual General Meeting.
Authority under Sections 75 and 76 of the Companies Act 2016 for Directors to Allot and Issue New
Axiata Shares
The Company has not issued any new shares under the general mandate for allotment and issuance of
shares up to 10% of the issued shares of the Company, which was approved at the 26th Annual General
Meeting held on 23 May 2018 and which shall lapse at the conclusion of the 27th Annual General Meeting to
be held on 29 May 2019. The proposed Ordinary Resolution 13 is a general mandate pursuant to Sections 75
and 76 of the Companies Act 2016 obtained from the shareholders of the Company at the Annual General
Meeting and this resolution, if approved, will give the Directors the mandate to allot and issue new shares in
the Company or to make or grant offers, agreements or options in respect of such shares to such persons,
in their absolute discretion including to make or grant offers, agreements or options which would or might
require share in the Company to be issued after the expiration of the approval and flexibility to the Company
in respect of any possible fund raising activities without having to seek shareholders’ approval via a general
meeting subsequent to this 27th Annual General Meeting, provided the aggregate number of shares issued
does not exceed 10% of the total number of issued shares of the Company for the time being. The general
mandate, unless revoked or varied by the Company at a general meeting, will be valid until the next Annual
General Meeting of the Company. The rationale is to avoid delay in the capital raising initiatives including
placement of shares for the purpose of funding current and/or future current and/or future investment
project, working capital and/or acquisitions as well as in the event of any strategic opportunities involving
equity deals which may require the Company to allot and issue new shares on urgent basis and thereby
reducing administrative time and relevant cost associated with convening additional general meeting(s). In
any event, the exercise of this mandate is only to be undertaken if the Board considers it to be in the best
interest of the Company.
Our Performance Our Governance Other Information 89
 Our Business Statements and Analysis Our Strategy The Value We Create Our Performance Our Governance Other Information 90

Integ rated Annua l Repor t 2018

Statement Accompanying Notice of Annual General Meeting Pursuant To Paragraph 8.27(2), Main LR
DIRECTORS STANDING FOR RE-ELECTION AT THE 27TH ANNUAL GENERAL MEETING

The following are Directors retiring pursuant to Clause 104 and Clause 110(ii) of the Company’s Constitution and standing for re-election:

Clause 104: Retirement by rotation

1. Tan Sri Ghazzali Sheikh Abdul Khalid

2. Tan Sri Jamaludin Ibrahim
3. Dato’ Mohd Izzaddin Idris

Clause 110(ii): Retirement after appointment to fill casual vacancy

1. Dr Lisa Lim Poh Lin

2. Khoo Gaik Bee

The profiles of the above Directors are set out in the Profile of Directors’ section of the GAFS from pages 4 to 7.

Save for Tan Sri Jamaludin Ibrahim, none of the above Directors has any interest in the securities of the Company and its related corporation. The securities holdings of Tan Sri Jamaludin Ibrahim are
disclosed on page 191 of the GAFS.
PROXY FORM
(Before completing the form, please refer to the notes overleaf)
“A” I/We, ___________________________________________________________________________________________________
(NAME AS PER NRIC/CERTIFICATE OF INCORPORATION IN CAPITAL LETTERS)
with (NEW NRIC NO.) _______________________ (OLD NRIC NO.) ____________________ (COMPANY NO.) ____________________
of ______________________________________________________________________________________________________
(FULL ADDRESS)
________________________________________ (TELEPHONE/MOBILE NO.) _________________________________________
being a Member/Members of AXIATA GROUP BERHAD hereby appoint_______________________________________________
(NAME AS PER NRIC IN CAPITAL LETTERS)
with (NEW NRIC NO.) ______________________________________ (OLD NRIC NO.) ___________________________________
of _______________________________________________________________________________________________________
(FULL ADDRESS)
_________________________________________________________________________________________________________
or failing him/her, _________________________________________________________________________________________
(NAME AS PER NRIC IN CAPITAL LETTERS)
with (NEW NRIC NO.) _______________________________________ (OLD NRIC NO.) __________________________________
of _______________________________________________________________________________________________________
(FULL ADDRESS)
or failing him/her, the Chairman of the Meeting*, as my/our first proxy to vote for me/us on my/our behalf at the 27th Annual
General Meeting of AXIATA GROUP BERHAD to be held at Nexus Ballroom 2 & 3, Level 3A, Connexion@Nexus, No. 7 Jalan
Kerinchi, Bangsar South City, 59200 Kuala Lumpur, Malaysia on Wednesday, 29 May 2019 at 10.00 a.m. or at any adjournment
thereof.
“B” If you wish to appoint a second proxy, please complete this section.
I/We, ___________________________________________________________________________________________________
(NAME AS PER NRIC/CERTIFICATE OF INCORPORATION IN CAPITAL LETTERS)
with (NEW NRIC NO.) ______________________ (OLD NRIC NO.) ____________________ (COMPANY NO.) __________________
of _______________________________________________________________________________________________________
(FULL ADDRESS)
________________________________________ (TELEPHONE/MOBILE NO.) _________________________________________
being a Member/Members of AXIATA GROUP BERHAD hereby appoint_______________________________________________
(NAME AS PER NRIC IN CAPITAL LETTERS)
with (NEW NRIC NO.) _____________________________________ (OLD NRIC NO.) ____________________________________
of _______________________________________________________________________________________________________
(FULL ADDRESS)
_________________________________________________________________________________________________________
or failing him/her, _________________________________________________________________________________________
(NAME AS PER NRIC IN CAPITAL LETTERS)
with (NEW NRIC NO.) ______________________________________ (OLD NRIC NO.) ___________________________________
of _______________________________________________________________________________________________________
(FULL ADDRESS)
or failing him/her, the Chairman of the Meeting*, as my/our second proxy to vote for me/us on my/our behalf at the 27th Annual
General Meeting of AXIATA GROUP BERHAD to be held at Nexus Ballroom 2 & 3, Level 3A, Connexion@Nexus, No. 7 Jalan
Kerinchi, Bangsar South City, 59200 Kuala Lumpur, Malaysia on Wednesday, 29 May 2019 at 10.00 a.m. or at any adjournment
thereof.
Note:
* Strike out if inapplicable
NOTES:
Proxy and/or Authorised Representative
1. A Member entitled to attend and vote at the above Meeting is entitled to appoint a proxy without any restriction to the qualification of the proxy to
attend and vote in his/her stead.
2. The Company shall be entitled to reject any instrument of proxy lodged if the member is not shown to have any shares entered against his name in
the Register and/or subject to Clause 41 of the Constitution of the Company in relation to the Record of Depositors made available to the Company.
3. A Member entitled to attend and vote at the Meeting is not entitled to appoint more than two proxies to attend and vote on his/her behalf. Where
a Member appoints two proxies, the appointment shall be invalid unless the percentage of the shareholding to be represented by each proxy is
specified.
4. Where a Member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991 (“SICDA”), it may appoint at least
one proxy but not more than two proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit
of the said Securities Account.
Every appointment submitted by an authorised nominee as defined under the SICDA, must specify the CDS Account Number.
5. Where a member of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Company for multiple beneficial owners in
respect of each securities account (omnibus account), there is no limit to the number of proxies which the Exempt Authorised Nominee may appoint
in respect of each omnibus account it holds.
6. The instrument appointing a proxy shall:
a) in the case of an individual, be signed by the appointer or by his/her attorney; or
b) in the case of a corporation, be either under its common seal or signed by its attorney or an officer on behalf of the corporation.
If the instrument appointing a proxy is signed by an officer on behalf of the corporation, it should be accompanied by a statement reading “signed as
authorised officer under an Authorisation Document, which is still in force, no notice of revocation has been received”. If the instrument appointing a
proxy is signed by the attorney duly appointed under a power of attorney, it should be accompanied by a statement reading “signed under a power
of attorney, which is still in force, no notice of revocation has been received”.
Any alteration to the instrument appointing a proxy must be initialed.
7. A corporation which is a Member, may by resolution of its Directors or other governing body authorise such person as it thinks fit to act as its
representative at the Meeting, in accordance with Clause 101 of the Constitution. Pursuant to Section 333 (3) of the Companies Act 2016, if the
corporation authorizes more than one person, every one of the representative is entitled to exercise the same powers on behalf of the corporation
as the corporation could exercise if every one of the representative was an individual member of the Company. However, if more than one of the
representatives do not purport to exercise the power in the same way, the power is treated as not exercised.
8. The instrument appointing a proxy together with the duly registered power of attorney referred to in Note 6 above, if any, must be deposited at the
office of the Share Registrar, Tricor Investor & Issuing House Services Sdn Bhd (“Tricor”), Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3,
Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia or its Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium,
Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia no later than 28 May 2019 at 10.00 a.m. You also have the option of
lodging the proxy appointment electronically via Tricor’s TIIH Online website at https://tiih.online no later than 28 May 2019 at 10.00 a.m. For further
information on the electronic lodgement of Proxy Form, kindly refer to the Annexure of the Administrative Notes.
9. Pursuant to Paragraph 8.29 of the Main LR, all resolutions set out in the Notice of the 27th AGM will be put to vote on poll.
Members Entitled to Attend, Speak and Vote
10. For purposes of determining a member who shall be entitled to attend, speak and vote at the 27th AGM, the Company shall be requesting Bursa
Depository, in accordance with Clause 75 of the Constitution and Section 34(1) of the SICDA, to issue a General Meeting Record of Depositors as at
16 May 2019. Only a depositor whose name appears in the General Meeting Record of Depositors as at 16 May 2019 shall be entitled to attend, speak
and vote at the said meeting or appoint a proxy(ies) on his/her behalf.
 For appointment of two proxies, percentage of
shareholdings to be represented by the proxies:
Percentage (%)
Proxy* “A”
Proxy* “B”
TOTAL 100%
* Please fill in the proportion of the holding to be presented by each proxy
My/Our proxy/proxies is/are to vote as indicated below:
Please indicate with an ‘X’ in the appropriate box against each resolution how you wish your proxy to vote. If no instruction is given, this form will be
taken to authorise the proxy to vote or abstain at his/her discretion.
Proxy “A” Proxy “B”
Resolutions For Against For Against
Ordinary Business
1. Ordinary Resolution 1 – Re-election of Tan Sri Ghazzali Sheikh Abdul Khalid
2. Ordinary Resolution 2 – Re-election of Tan Sri Jamaludin Ibrahim
3. Ordinary Resolution 3 – Re-election of Dato’ Mohd Izzaddin Idris
4. Ordinary Resolution 4 – Re-election of Dr Lisa Lim Poh Lin
5. Ordinary Resolution 5 – Re-election of Khoo Gaik Bee
6. Ordinary Resolution 6 – Directors’ Fees and Benefits Payable by the Company
7. Ordinary Resolution 7 – Directors’ Fees and Benefits Payable by the Subsidiaries
8. Ordinary Resolution 8 – Re-appointment of PricewaterhouseCoopers PLT as Auditors
Special Business
9. Ordinary Resolution 9 – Continuation of Tan Sri Ghazzali Sheikh Abdul Khalid to act as
Independent Non-Executive Director (“INED”)
10. Ordinary Resolution 10 – Continuation of David Lau Nai Pek to act as INED
11. Ordinary Resolution 11 – Proposed Shareholders’ Mandate
12. Ordinary Resolution 12 – Proposed Renewal of the Authority For Directors to Allot and Issue
shares in relation to the Dividend Reinvestment Scheme
13. Ordinary Resolution 13 – Authority to Allot and Issue shares under Section 75 and 76 of the
Companies Act 2016
Signed this _________ day of ___________________ 2019
No. of ordinary shares held CDS Account No. of Authorised Nominee*
- -
* Applicable to shares held through a nominee account
Signed this _________ day of ___________________ 2019 _________________________________
Signature(s)/Common Seal of Member(s)
2. Fold this flap to seal
AFFIX STAMP
RM0.80
HERE
The Share Registrar
Tricor Investor & Issuing House Services Sdn Bhd (11324-H)
Unit 32-01, Level 32, Tower A
Vertical Business Suite, Avenue 3
Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur, Malaysia
1. Fold here